In the UAE, ADNOC Logistics and Services announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded contracts worth $1.9 billion to Jiangnan Shipyard for the construction of up to 13 new vessels. The order includes nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs).
The VLECs, with a 99,000 cubic meter capacity and costing approximately $1.4 billion, will be deployed on 20-year charter contracts, generating around $4 billion in revenue. These vessels will be among the world’s largest ethane carriers, equipped with dual fuel engines powered by ethane or conventional fuels, and scheduled for 2025-2027 delivery.
Currently, there are more than 25 VLECs in operation with different shipping companies around the world. Upon receiving the nine new vessels, AW Shipping will own one of the world’s largest fleets of VLECs.
The VLACs, costing $250 million each, will enhance the fleet’s capacity for transporting lower-carbon energy sources. The VLACs, with a capacity of 93,000 cubic meters for ammonia, can be powered by liquefied petroleum gas (LPG) or conventional fuels, with ship deliveries beginning as soon as 2026.
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Tags: ADNOC, ammonia, ethane, UAE
Category: Sustainable Marine Fuels
