International Finance

Adnoc’s logistics unit forms JV with China’s Wanhua Chemicals

Adnoc Wanhua Chemicals_IFM_Image
The JV, called AW Shipping, will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers

The logistics arm of state-owned oil giant Abu Dhabi National Oil Company (Adnoc) has formed a joint venture with China’s Wanhua Chemicals, the media reported.

The joint venture between Adnoc’s logistics unit and Wanhua Chemicals will be called AW Shipping.

It will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers.

In a statement, Adnoc said, “The company will be responsible for transporting LPG cargoes and other petroleum products, sourced from the ADNOC Group and global suppliers, to Wanhua Group’s manufacturing bases in China and around the world. To deliver maximum fleet efficiency, the company may also pursue other market opportunities.”

With regard to the JV with Wanhua Chemicals, Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group chief executive officer told the media, “The JV further solidifies Adnoc L&S’ position as the largest, fully integrated logistics and shipping company in the UAE and paves the way for the transportation of greater LPG volumes to China, in line with market demand.”

Recently, AW Shipping signed a contract with CSSC Jiangnan Shipyard for the construction of three 86,000 cu m very large gas carriers (VLGCs).

The VLGCs, designed by Jiangnan Shipyard, will be in 230 metres length, 36.6 metres width and 22.2 metres depth, and equipped with LPG dual-fuel engines.

The delivery is expected to take place somewhere in the third quarter of 2022, the media reported.

Earlier this year, Adnoc Logistics and Services signed an agreement with Atlantic Gulf and Pacific for the conversion, supply, operations and maintenance of a Floating Storage Unit (FSU) at AG&P’s new LNG import facility located within Karaikal Port in Puducherry, India.

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