ADNOC Logistics and Services (ADNOC L&S) said AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts worth 7 billion dirhams ($1.9 billion) to Jiangnan Shipyard in China, according to the company's release.
The contracts include the construction of nine Very Large Ethane Carriers (VLECs) priced at $1.4 billion and two Very Large Ammonia Carriers (VLACs) priced at $250 million, with the option for another two VLACs at the same price, the company said in a filing on the Abu Dhabi Securities Exchange (ADX) on Tuesday.
The VLECs, expected to be delivered between 2025 and 2027, will be deployed on 20 years’ time charter contracts, generating revenue of $4 billion.
Upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.
Each VLAC will have a carrying capacity of 93,000 cubic meters of ammonia. They are scheduled for delivery between 2026 and 2028.
AW Shipping joint venture was established in 2020 to grow ADNOC L&S’ global operations and strengthen industrial relations between the UAE and China.
The ADNOC subsidiary has announced plans to deploy more than $5 billion in value-accretive investments following its listing on ADX in June 2023.