AW Shipping Marks Milestones in Construction of Dual-Fuel Ethane and Ammonia Carriers

AW Shipping, a joint venture between ADNOC L&S and Wanhua Chemical Group, has achieved significant progress in the construction of dual-fuel ethane and ammonia carriers, signaling a major step towards expanding and modernizing its fleet.

Recently, ADNOC L&S announced via social media updates that the construction of the joint venture’s first very large ammonia carrier (VLAC) has commenced with an official steel cutting ceremony.

The VLAC fleet, designed to transport ammonia or LPG with a capacity of 93,000 cubic meters (cbm), will be powered by dual-fuel engines capable of running on LPG or conventional fuels, aligning with ADNOC’s net-zero ambitions by 2045.

Furthermore, the launch of the first of nine very large ethane carriers (VLECs) commissioned through AW Shipping has been revealed.

Equipped with a carrying capacity of 99,000 cbm, the VLEC features a dual-fuel engine that can utilize ethane or conventional fuels, along with an innovative hull design to enhance operational efficiency.

These vessels were ordered by AW Shipping at China’s Jiangnan Shipbuilding under contracts totaling approximately $1.9 billion in July 2024.

The contract encompassed nine VLECs and two VLACs, marking the largest order placed by the joint venture established in 2020 to facilitate a 10-year LPG supply agreement between the UAE and China.

Subsequently, two additional ammonia carriers were added to the order in October 2024.

The VLECs are scheduled for delivery between 2025 and 2027, set to operate on 20-year time charter contracts that are projected to generate revenue of $4 billion over 180 years of combined contract coverage.

Delivery of the VLACs is expected between 2026 and 2028.