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Adnoc + Wanhua JV place USD 1.9 bn carrier order: AW Shipping, a joint venture between the UAE’s Adnoc Logistics and Services and China’s Wanhua Chemical Group, has placed an order worth USD 1.9 bn for 11 dual-fuel low carbon carriers from China’s Jiangnan Shipyard, with deliveries starting next year, according to a statement (pdf). The move aims to enhance Adnoc’s capacity to transport lower-carbon energy sources.
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Order breakdown: AW Shipping ordered nine Very Large Ethane Carriers (VLECs) valued at USD 1.4 bn, and two Very Large Ammonia Carriers (VLACs) valued at USD 250 mn, with an option for two additional VLACs at the same price, according to the statement.
Details: The VLEC carriers — which rank among the largest ethane and ammonia carriers globally — will be operated under a 20-year time charter contract, and are expected to generate USD 4 bn in revenues. The VLACs, set for delivery between 2026 and 2028, will have a carrying capacity of 93k cubic meters and will be powered by liquefied petroleum gas (LPG) or conventional fuels. The VLECs, scheduled for delivery between 2025 and 2027, will each have a carrying capacity of 99k cubic meters and can be powered by ethane or conventional fuels.
Eyeing expansion: “This new order by AW Shipping reinforces ADNOC L&S’ ongoing fleet expansion and will bolster our ability to transport lower-carbon energy sources and support the energy transition,” Andoc L&S CEO and AW Shipping Chairman Abdulkareem Al Masabi said in the statement.
All part of a big post-IPO plan: The order is part of an expansion strategy unveiled ahead of Adnoc L&S’ landmark USD 769 mn IPO last year, which will see it shell out USD 5 bn in investments in the medium term.
Andoc’s been on an expansion spree: Adnoc L&S received a Hanwha Ocean-produced new-build very large crude carrier (VLCC), the Hafeet, in June of last year. The firm received its second newbuild dual-fuel very large crude carrier (VLCC) the following month. Adnoc L&S also took in eight self-propelled jack-up barges (JUB) through its subsidiary Zakher Marine International (ZMI), one of which was the first to serve the Iraqi market, in September.
And it doesn’t stop there: Adnoc L&S acquired multinational shipping pool operator Navig8 in a USD 1.04 bn transaction last month, with transfer ownership retroactively effective from 1 January 2024. The company snapped up an 80% stake for USD 1.04 bn in June, before buying the remaining 20% stake in Navig8 in 2027 for an additional consideration ranging from USD 335 mn to USD 450 mn.
About AW Shipping: AW Shipping, formed in 2020, looks to develop the industrial relationship between China and the UAE. The JV was supported in 2018 by a 10-year LPG supply contract inked by the pair, according to a statement. Under the JV, Adnoc group and global suppliers offer its LPG cargo and other petroleum products, which are transported to Wanhua Group’s global manufacturing bases.
