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Tue 4 Aug 2020 02:00 PM

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UAE strengthens Chinese ties with Adnoc, Wanhua deal

AW Shipping will be responsible for transporting LPG cargoes and other petroleum products

UAE strengthens Chinese ties with Adnoc, Wanhua deal

The new company, which is incorporated in Abu Dhabi Global Market (ADGM), will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers.

Links between the UAE and China have been further strengthened with the signing of a joint venture between Abu Dhabi-based Adnoc Logistics & Services (ADNOC L&S) and Wanhua Chemical Group (Wanhua), to create AW Shipping Limited.

The new company, which is incorporated in Abu Dhabi Global Market (ADGM), will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers.

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.

Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Group CEO, said: "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.”

Adnoc L&S owns and operates the UAE’s largest shipping fleet, which is expected to grow further in the coming years as Adnoc increases its upstream and downstream production capacity, and enters into trading.

Liao Zengtai, chairman of Wanhua Chemical Group, said: “The new company will strengthen the strategic cooperation between Adnoc and Wanhua and will also ensure the stable supply of LPG cargoes and other petroleum products for Wanhua system.”

Last year, ADNOC L&S, which was formed in late 2016, transported over 20 million metric tonnes of various oil & gas products and dry bulk commodities.

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