The contracts were signed in Abu Dhabi, following the initial agreement in July 2024. Credit: ADNOC Logistics & Services Plc.

The joint venture of ADNOC Logistics and Services (ADNOC L&S) with Wanhua Chemical Group, AW Shipping, has awarded $250m in contracts to Jiangnan Shipyard for the construction of two additional Very Large Ammonia Carriers (VLACs).

The contracts were signed in Abu Dhabi, coinciding with the opening ceremony of Jiangnan Shipyard’s first Middle Eastern office.

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This follows the initial agreement made in July 2024, which included the option for two more vessels.

ADNOC L&S CEO and AW Shipping chairman Captain Abdulkareem Al Masabi said: “These contracts demonstrate AW Shipping and ADNOC L&S’s commitment to meeting future demand for lower-carbon energy sources such as ammonia, which are increasingly vital in powering the energy transition.

“We are pleased to welcome Jiangnan Shipyard as they establish a new office in Abu Dhabi, strengthening our growing partnership and highlighting the robust industrial ties between the UAE and China.”

The VLACs will have a capacity of 93,000m³ each, ranking them among the largest ammonia carriers globally.

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The delivery of these carriers is expected between 2027 and 2028.

These ships will be outfitted with dual-fuel engines, which are energy-efficient and capable of operating on liquefied petroleum gas or conventional fuels.

Jiangnan Shipyard chairman Lin Ou said: “The signing of these two additional VLAC contracts further deepens the cooperation and friendship among ADNOC L&S, Wanhua Chemical and Jiangnan Shipyard, which is a concrete embodiment of the joint practice of decarbonizing industrial process by all parties, and injects new impetus into the future energy transition.”

In July 2022, ADNOC L&S announced the acquisition of Abu Dhabi-based Zakher Marine International (ZMI).