Middle East and Japanese VLAC order rush at Chinese shipyards

AW Shipping, a joint venture between ADNOC Logistics and Services and Wanhua Chemical Group, has inked a shipbuilding contract with CSSC Jiangnan Shipyard for the construction of two 93,000 cubic meters very large ammonia carriers (VLACs) with an option of another two VLACs, which are due for delivery from 2026.

The deal also includes the construction of nine 99,000 cu metres very large ethane carriers (VLECs) to be delivered between 2025 and 2027.

Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, said: “This new order reinforces ADNOC L&S’ ongoing fleet expansion and will enhance our ability to transport lower-carbon energy sources and support the energy transition.”

Kou Guangwu, President & CEO of Wanhua Chemical Group, said: “We are glad to place new VLECs and VLACs orders at Jiangnan Shipyard with ADNOC L&S, which is a firm recognition of high-end Chinese equipment manufacturing capability and creates a solid foundation to further deepen the strategic cooperation between Wanhua and ADNOC L&S. These green and low-carbon ships will support Wanhua to reduce transportation carbon emissions and accelerate the decarbonization.”

Jiangnan Shipyard is a unit of China State Shipbuilding Corporation based in Shanghai, which is capable of building full series of gas carriers.

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Additionally, Imabari-based shipowner Nissen Kauin aplaced an ordered the Yangzi-Mitsui Shipbuilding, a joint venture between Yangzjiang Shipbuilding and Mitsui E&S Shipbuilding for the construction of four VLACs, which are scheduled for delivery between the second quarter of 2028 and the first quarter of 2029.

It is the first VLAC order Yangzijiang Shipbuilding has contracted, making it the first private shipyard in China to build very large ammonia carriers.