ADNOC Logistics and Services plc (ADNOC L&S) announced that AW Shipping, its joint venture with Wanhua Chemical Group, has received delivery of Gas Yongjiang, the first of nine Very Large Ethane Carriers (VLECs) built by Jiangnan Shipyard in China.
The vessel will begin service under a 20-year time charter agreement.
The remaining eight VLECs are expected to be delivered between 2025 and 2027.
Once fully operational, the fleet is expected to generate approximately $4 billion (AED14.7 billion) in revenue through long-term contracts totaling 180 years.
After all vessels are delivered, AW Shipping will operate one of the largest VLEC fleets globally.
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said, “The delivery of Gas Yongjiang, the first VLEC to join the AW Shipping fleet, marks a significant milestone in our fleet expansion and entry into the global ethane shipping market. These nine vessels, purpose-built to transport ethane, a critical feedstock for the global petrochemical industry, will boost our capacity to meet growing demand, particularly in fast-growing Asian markets and reinforce our leadership in lower-carbon energy transport.”
Gas Yongjiang is one of the world’s largest ethane carriers, with a capacity of 98,000 cubic meters. The vessel incorporates optimised hull design and integrated energy-saving technologies aimed at reducing emissions.
ADNOC L&S also received Al Reef, the third of six LNG carriers under construction by Jiangnan Shipyard.
The naming and delivery ceremony of both vessels was attended by senior executives from ADNOC L&S, Wanhua Chemical Group, and Jiangnan Shipyard.
ADNOC Logistics and Services plc is a publicly listed subsidiary of Abu Dhabi National Oil Company (ADNOC), operating in the maritime logistics and shipping sector. The company provides integrated logistics, shipping, and marine services for the energy sector, primarily supporting ADNOC’s upstream and downstream operations.
Wanhua Chemical Group Co., Ltd. is a publicly traded Chinese chemical manufacturing company headquartered in Yantai, Shandong Province. It operates in the petrochemical and chemical materials industries, with global production and research facilities.
AW Shipping Ltd. is a joint venture between ADNOC Logistics and Services plc and Wanhua Chemical Group Co., Ltd., established to provide shipping and logistics solutions for liquefied gases and chemicals.
Jiangnan Shipyard (Group) Co., Ltd. is a subsidiary of China State Shipbuilding Corporation, operating as a state-owned enterprise engaged in the construction of commercial and military vessels.