ADNOC L&S and Wanhua Chemical Award $250 Million Contract for New Ammonia Carriers

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According to Transport and Logistics ME, ADNOC Logistics & Services (ADNOC L&S), a global leader in energy maritime logistics, announced that its joint venture with Wanhua Chemical Group, AW Shipping, has awarded shipbuilding contracts worth $250 million to China’s Jiangnan Shipyard. These contracts are for the construction of two Very Large Ammonia Carriers (VLACs), expanding the collaboration between the UAE and China in the logistics and industrial sectors.

Strengthening UAE-China Collaboration

The shipbuilding contracts were signed during a ceremony in Abu Dhabi, coinciding with the opening of Jiangnan Shipyard’s first office in the Middle East. This builds on an earlier agreement signed in China in July 2024, which included an option for two additional vessels. The partnership reflects ADNOC L&S’s growing focus on energy logistics and highlights the strengthening ties between the UAE and China.

Largest Ammonia Carriers and Dual-Fuel Technology

Each of the new VLACs will have a capacity of 93,000 cubic meters, making them some of the largest ammonia carriers in the world. Equipped with dual-fuel engines, the vessels will be able to run on liquefied petroleum gas (LPG) or conventional fuels, emphasizing energy efficiency. The ships are expected to be delivered between 2027 and 2028, supporting ADNOC L&S’s commitment to sustainable, lower-carbon energy solutions.

Supporting the Global Energy Transition

This development aligns with ADNOC L&S’s long-term strategy to support the global energy transition. The focus on ammonia as a critical element of future energy systems underlines the importance of sustainable logistics solutions in transporting this key resource, as global demand for clean energy continues to grow. The collaboration between the UAE and China in this project represents a significant step in advancing these goals.

 

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Source: Transport and Logistics ME