Adnoc's shipping division launches joint venture with Chinese company
AW Shipping will have a direct stake in increased LPG shipments to China
Dubai: Adnoc Logistics & Services has entered a joint venture with China’s Wanhua Chemical Group to launch AW Shipping Ltd. The new entity will be incorporated in Abu Dhabi Global Market (ADGM).
“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,” said Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO.
The formation of AW Shipping follows a 10-year liquefied petroleum gas (LPG) supply contract between Adnoc and Wanhua in November 2018.
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AW Shipping will own and operate a fleet of ‘very large gas carriers’ (VLGCs) and tankers. It will transport LPG cargoes and other petroleum products, sourced from the ADNOC Group and other suppliers to Wanhua Group’s manufacturing bases in China and elsewhere.
“The company may also pursue other market opportunities,” the statement added.
Last year, ADNOC L&S transported over 20 million metric tonnes of oil and gas products and dry bulk commodities.
The establishment of AW Shipping is another example of how Adnoc is stretching the margin from every molecule that we produce, refine, ship and sell, while also forging stronger partnerships in key growth markets.