ADNOC L&S joint venture receives first of nine new ethane carriers

ADNOC Logistics and Services (ADNOC L&S) announced on August 14 that its joint venture with Wanhua Chemical Group, AW Shipping, has taken delivery of the Gas Yongjiang, the first of nine new very large ethane carriers (VLECs). The vessel was delivered from the Jiangnan Shipyard in China.

The Gas Yongjiang will commence operations under a 20-year time charter agreement. The remaining eight VLECs are scheduled for delivery between 2025 and 2027. Once all nine vessels are delivered, the company said that AW Shipping will operate one of the world’s largest VLEC fleets, with the fleet projected to generate approximately $4 billion in revenue over 180 years of long-term contracts.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated that the delivery marks a significant milestone in the company's entry into the global ethane shipping market. He said the nine purpose-built vessels will boost capacity to meet growing demand.

Concurrently, ADNOC L&S also took delivery of the Al Reef, the third of six new Liquefied Natural Gas (LNG) carriers being built by Jiangnan Shipyard, as part of its strategy to modernise its gas fleet.