Abu Dhabi National Oil Company (ADNOC)’s shipping and maritime logistics subsidiary, ADNOC Logistics and Services (ADNOC L&S) has entered into a new joint venture with Wanhua Chemical Group to create a news entity, AW Shipping Limited.
The new firm, AW Shipping Limited will own and operate a fleet of very large gas carriers, VLGCs, and modern product tankers which will transport 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.
“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 AW Shipping supports ADNOC’s smart growth and value creation strategy and 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.”
The formation of the new entity is a followup to a 10-year LPG supply contract signed between ADNOC and Wanhua in November 2018.
ADNOC Logistics and Services (ADNOC L&S)
ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD. The firm delivers oil, gas, and petroleum products to customers across the world. It owns and operates the UAE’s largest shipping fleet. The integration created synergies between shipping, marine services, offshore logistics, and onshore logistics to create the largest integrated shipping and maritime logistics company in the GCC.
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 a key ingredient in the manufacture of high-performance adhesives and synthetic fibers, which go into a wide range of industries.