SINGAPORE (ICIS)--AW Shipping, a 50:50 joint venture between China’s Wanhua Chemical and UAE’s ADNOC Logistics & Services (ADNOC L&S), has signed a contract for the construction of three very large gas carriers (VLGC), a source from Wanhua said.
The three VLGCs, each with an 86,000 cubic-metre (cbm) capacity, will be built by Chinese firm Jiangnan Shipyard and will be delivered in the third and fourth quarter of 2022.
Wanhua is one of the world's leading producers for methylene diphenyl diisocyanate (MDI), while ADNOC L&S is the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company (ADNOC).
AW Shipping was formed to further strategic cooperation between Wanhua and ADNOC.
The joint venture company will own and operate a fleet of VLGCs and modern product tankers.
It will be responsible for transporting liquefied petroleum gas (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 and Wanhua have an existing contract signed in November 2018 for a 10-year supply of liquefied petroleum gas (LPG).
Wanhua Chemical's new 1m tonne/year cracker, which is expected to start up in the fourth quarter of 2020, will take nearly 100% LPG as feedstock.
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