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Highlights

AW shipping will own and operate VLGCs

JV will be based in Abu Dhabi

ADNOC, Wanhua signed in 2018 10-year LPG contract

Dubai — Abu Dhabi National Oil Co., the UAE's biggest energy producer, has set up a joint venture with China's Wanhua Chemical Group to own and operate a fleet of very large gas carriers and product tankers.

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ADNOC Logistics & Services, the shipping and maritime logistics arm of ADNOC, will be the partner for Wanhua in AW Shipping, which will be based in Abu Dhabi, ADNOC said in a statement August 4.

"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 said. "To deliver maximum fleet efficiency, the company may also pursue other market opportunities."

ADNOC and Wanhua signed in November 2018 a 10-year LPG supply contract.

ADNOC L&S operates the UAE's largest shipping fleet, including oil, gas and petroleum product tankers.

Last year, ADNOC L&S transported over 20 million metric tonnes of various oil and gas products and dry bulk commodities.