Abu Dhabi-listed AW Shipping, a joint venture of Adnoc Logistics & Services (Adnoc L&S) and China’s Wanhua Chemical Group, has awarded shipbuilding contracts totalling approximately $1.9bn to Jiangnan Shipyard in China.

The contract for the construction of nine very large ethane carriers (VLECs) is priced at an estimated $1.4bn and the contract for two very large ammonia carriers (VLACs) is priced at about $250m, with the option for another two VLACs at the same price.

“The new vessels will be among the world’s largest ethane and ammonia carriers and run on energy-efficient dual-fuel engines,” Adnoc L&S, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), said in a statement on 23 July.

The VLECs will be deployed on 20-year time charter contracts, generating revenue of $4bn through 180 years of contract coverage, Adnoc L&S said.

The contracts were signed in Beijing at a ceremony witnessed by Sultan Ahmed Al-Jaber, UAE Minister of Industry and Advanced Technology and Adnoc managing director and Group CEO, Liao Zengtai, Wanhua Chemical group chairman, Wu Xiande, the Fuzhou government mayor, Kai Hu, CSTC president, Ou Lin, Jiangnan Shipyard chairman and Wen Gang, CSSC chairman.

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.

Adnoc L&S and Wanhua Chemical Group established the AW Shipping joint venture in 2020, along with incorporating the company in Abu Dhabi Global Market (ADGM).

The latest order placed by AW Shipping “aligns with Adnoc L&S’ vision to deploy more than $5bn in value accretive investments following the company’s [Abu Dhabi Securities Exchange] ADX listing in June 2023".