ADNOC Logistics and Services PLC announced that AW Shipping, its joint venture with Wanhua Chemical Group, has awarded shipbuilding contracts to Jiangnang Shipyard in China for two Very Large Ammonia Carriers (VLACs) priced at approximately $250 million, with an option to purchase two additional VLACs at the same price.
The new vessels will run on energy-efficient dual fuel engines, will have a carrying capacity of 93,000 cubic meters each for ammonia, and can be powered by liquified petroleum gas or conventional fuels. As part of the agreement, AW Shipping also awarded $1.4 billion for nine Very Large Ethane Carriers (VLECs) that will be deployed on 20-year time charter contracts generating revenue of $4 billion.
ADNOC is headquartered in the United Arab Emirates, and recently delivered the first low-carbon ammonia enabled by carbon capture and storage to Mitsui in Japan for use in power generation (GM May 17, p. 25). The ammonia was produced by Fertiglobe’s Fertil facility in Ruwais Industrial City in Abu Dhabi, UAE.