ADNOC Logistics & Services Forms Shipping JV with Wanhua Chemicals
ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company has announced the formation of a new strategic joint venture (JV) with Wanhua Chemical Group (Wanhua).
The new company named AW Shipping Limited is incorporated in Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE).
This strategic JV agreement further strengthens the collaboration between ADNOC and Chinese companies and builds on the deep-rooted bilateral relations between China and the UAE.
The JV underscores ADNOC’s focus on value-creating deals and will support the delivery of its 2030 smart growth strategy.
AW Shipping Limited (AW Shipping) will own and operate a fleet of very large gas carriers (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.
To deliver maximum fleet efficiency, the company may also pursue other market opportunities.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: "We are very pleased to establish this strategic joint venture with Wanhua Chemical Group.
"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 formation of AW Shipping follows a 10-year liquefied petroleum gas (LPG) supply contract signed between ADNOC and Wanhua in November 2018.
ADNOC L&S is a crucial enabler in the ADNOC value chain, delivering oil, gas, and petroleum products to customers across the world.
It owns and operates the UAE’s largest shipping fleet, which it expects to grow further in the coming years as ADNOC increases its upstream and downstream production capacity, and enters into trading.
Mr. Liao Zengtai, Chairman of Wanhua Chemical Group, said: “The cooperation will make contribution to the “One Belt, One Road” project.”
ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD. Last year, ADNOC L&S transported over 20 million metric tonnes of various oil & gas products and dry bulk commodities.
Wanhua Group is one of the world's leading producers for methylene diphenyl diisocyanate (MDI) a key ingredient in the manufacture of high-performance adhesives and synthetic fibers, which go into a wide range of industries.