ADNOC Logistics & Services Joint Venture Takes Delivery of First Very Large Ethane Carrier, Launching Major Fleet Expansion
ADNOC Logistics and Services plc listed on the Abu Dhabi Securities Exchange under the symbol ADNOCLS and ISIN AEE01268A239 — has reached a major milestone in its long-term growth strategy with the delivery of Gas Yongjiang, the first in a planned fleet of nine advanced Very Large Ethane Carriers (VLECs). This historic delivery was carried out through AW Shipping, ADNOC L&S’s strategic joint venture with China’s Wanhua Chemical Group, and marks the company’s official entry into the global ethane shipping market.
The delivery ceremony, held at Jiangnan Shipyard in Shanghai, China, was attended by senior executives from ADNOC L&S, Wanhua Chemical Group, and Jiangnan Shipyard, along with special guests and dignitaries. The event was particularly notable for the participation of Sharifa Al Mulla, the ceremonial sponsor of both Gas Yongjiang and Al Reef — and the first Emirati female officer to serve aboard the ADNOC L&S commercial shipping fleet.
A Key Step in a Multi-Year Fleet Expansion
Gas Yongjiang is the first of nine state-of-the-art VLECs being constructed by Jiangnan Shipyard as part of AW Shipping’s ambitious fleet expansion program. These vessels are designed to transport ethane — a vital feedstock for the global petrochemical industry — across long distances with maximum efficiency and minimal environmental impact.
The newly delivered vessel will operate under a 20-year time charter agreement, ensuring stable, long-term revenues for the joint venture. The remaining eight VLECs will be delivered in stages between 2025 and 2027. Once the full fleet is deployed, AW Shipping will operate one of the largest VLEC fleets in the world, positioning itself as a key player in the fast-growing ethane logistics sector.
Based on ADNOC L&S’s projections, these nine ships are expected to generate approximately $4 billion (AED 14.7 billion) in revenue over the lifetime of their contracts. This figure is derived from the cumulative total of 180 contract years, reflecting the combined charter periods of all nine vessels.
Leadership Perspectives
Captain Abdulkareem Al Masabi, Chairman of AW Shipping and CEO of ADNOC L&S, emphasized the strategic significance of the delivery:
“The arrival of Gas Yongjiang, the first VLEC to join the AW Shipping fleet, marks a defining moment in our growth journey. These purpose-built vessels will enable us to transport ethane, a critical input for the petrochemical industry, with world-class efficiency. This expansion not only strengthens our market position but also supports the growing demand for lower-carbon energy transport solutions, particularly in dynamic Asian markets.”
Captain Al Masabi further noted that the VLEC fleet aligns with ADNOC L&S’s mission to provide reliable, sustainable, and technologically advanced maritime logistics services that meet the evolving needs of global energy customers.
Echoing this sentiment, Kou Guangwu, President and CEO of Wanhua Chemical Group, reflected on the partnership’s evolution:
“Since we began our collaboration in 2018, our relationship with ADNOC L&S has expanded far beyond the supply of raw materials. We now work closely across shipping operations and other high-value chemical projects. Together, we are building synergies, integrating resources, and leveraging our respective strengths to create long-term, strategic value for both companies.”
From the shipbuilder’s perspective, Lin Ou, Chairman of Jiangnan Shipyard, underlined the technical and innovative milestones achieved:
“The naming of Gas Yongjiang and Al Reef reflects Jiangnan Shipyard’s dedication to producing high-value, intelligent, and energy-efficient vessels. Our collaboration with ADNOC L&S and Wanhua Chemical demonstrates how joint innovation and customer-focused partnerships can lead to groundbreaking achievements in intelligent manufacturing and maritime design.”
Technical Excellence: Gas Yongjiang
The Gas Yongjiang stands among the largest ethane carriers ever built, with a massive cargo capacity of 98,000 cubic meters. Designed for optimal performance, the vessel incorporates a series of advanced maritime technologies:
- Optimized Hull Design – Reduces hydrodynamic resistance, allowing for smoother travel and lower fuel consumption.
- Integrated Energy-Saving Systems – Includes waste heat recovery and other fuel-efficiency measures to lower greenhouse gas emissions.
- Environmental Compliance – Meets or exceeds the latest International Maritime Organization (IMO) emission standards, contributing to ADNOC L&S’s sustainability goals.
- Automated and Intelligent Navigation Systems – Ensures safe and efficient voyages even in challenging operating environments.
By integrating these technologies, Gas Yongjiang is expected to significantly reduce the carbon footprint of long-distance ethane transport, making it a key asset in ADNOC L&S’s lower-carbon growth strategy.
Parallel LNG Fleet Modernization
The delivery event also celebrated another milestone for ADNOC L&S — the arrival of Al Reef, the third of six next-generation LNG carriers ordered from Jiangnan Shipyard. These LNG carriers are central to ADNOC L&S’s broader objective of modernizing its gas transport fleet to meet rising global energy demands.
The LNG vessels share many of the same efficiency-focused design features as the VLECs, including advanced fuel systems, optimized hull shapes, and lower-emission propulsion technologies. This modernization effort will enable ADNOC L&S to serve customers more competitively in both the LNG and ethane shipping sectors.
Strengthening ADNOC L&S’s Global Role
The dual delivery of Gas Yongjiang and Al Reef is a clear demonstration of ADNOC L&S’s two-pronged strategy:
- Expand into new high-growth shipping markets — such as ethane transport, where demand is being driven by booming petrochemical production in Asia and beyond.
- Modernize and enhance existing capabilities — particularly in LNG transport, where the company already has decades of operational expertise.
Through AW Shipping, ADNOC L&S is not just expanding its fleet but also embedding itself deeper into the global energy value chain. The VLECs will directly serve petrochemical manufacturing hubs, while the LNG carriers will continue to supply fuel for global power generation and industrial use.
Cultural and Symbolic Significance
The naming of Gas Yongjiang and Al Reef was not only a technical milestone but also a cultural event. The vessels’ names reflect a blending of Arabic and Chinese heritage, symbolizing the strong bilateral ties between the United Arab Emirates and China.
Special recognition was given to Sharifa Al Mulla, whose role as the ceremonial sponsor marked a breakthrough moment for Emirati women in the maritime sector. Her achievement underscores ADNOC L&S’s commitment to diversity and inclusion within its workforce.
With the delivery of Gas Yongjiang, ADNOC L&S has formally entered the ethane shipping sector — a market that is projected to see strong growth in the coming decades. As global petrochemical demand rises, ethane will remain a crucial raw material for producing plastics, resins, and other industrial materials.
By securing long-term charters for all nine VLECs in advance, AW Shipping has effectively locked in predictable revenue streams, reducing market volatility risks. The combined 180 contract years represent a robust foundation for sustainable financial performance well into the 2040s.
Captain Al Masabi concluded:
“This delivery is more than a fleet addition — it is a strategic leap. We are expanding our service portfolio, reinforcing our partnerships, and building assets that will serve customers and shareholders for decades. With each vessel we take delivery of, we are strengthening ADNOC L&S’s role as a leader in the global maritime logistics industry.”
The arrival of Gas Yongjiang is a landmark moment for ADNOC L&S and AW Shipping. Backed by advanced shipbuilding technology, long-term charter agreements, and a strong partnership with Wanhua Chemical, the vessel sets the tone for a new era in ethane transportation. Coupled with the parallel expansion of its LNG fleet, ADNOC L&S is positioning itself as a diversified, sustainable, and globally competitive force in maritime energy logistics.