Abu Dhabi National Oil Company (Adnoc) has formed a joint venture with China’s Wanhua Chemical Group to operate a fleet very large gas carriers (VLGCs) and modern product tankers.
The joint venture has been formed between Adnoc’s subsidiary Adnoc Logistics & Services and Wanhua.
Named AW Shipping, it will own and operate a fleet of VLGCs and modern product tankers.
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.
ADNOC Group CEO Sultan Ahmed Al Jaber said: “We are very pleased to establish this strategic joint venture with Wanhua Chemical Group. This creative win-win partnership strengthens our growing relationship and will deliver greater value and efficiency for both our organizations.
“Importantly, 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.”
The establishment of the joint venture comes after a 10-year liquefied petroleum gas (LPG) supply contract signed between ADNOC and Wanhua in November 2018.
ADNOC L&S delivers oil, gas, and petroleum products to customers across the world.
Formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD, the company owns and operates the UAE’s largest shipping fleet.
In 2019, it transported over 20 million metric tonnes of various oil & gas products and dry bulk commodities.
Recently, Adnoc has added a Chinese company as a new partner in its Lower Zakum and Umm Shaif and Nasr offshore concessions.