ADNOC subsidiary forms shipping firm with China's Wanhua Chemical Group

New company to operate fleet of very large gas carriers, ship LPG cargoes worldwide

  
Staff are seen at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018.

Staff are seen at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018.

REUTERS/Satish Kumar

Abu Dhabi National Oil Company Logistics & Services (ADNOC L&S) has created a new shipping company through a joint venture with China’s Wanhua Chemical Group (Wanhua), it has been announced.

The new firm, named AW Shipping Limited, will be primarily responsible for transporting LPG cargoes and other petroleum products sourced from ADNOC Group and global suppliers to Wanhua Group’s manufacturing bases in China and around the world.

It will acquire and operate a fleet of very large gas carriers and modern product tankers to facilitate the transfer of cargoes.

In a statement, ADNOC said the new firm is incorporated in the Abu Dhabi Global Market in the UAE.

“The [joint venture] underscores ADNOC’s focus on value-creating deals and will support the delivery of its 2030 smart growth strategy,” the statement noted.

“To deliver maximum fleet efficiency, the company may also pursue other market opportunities,” it added.

Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said the joint venture is a “creative win-win partnership.”

“[It] strengthens our growing relationship and will deliver greater value and efficiency for both our organisations. Importantly, the [joint venture] 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,” he added.

(Writing by Cleofe Maceda; editing by Mily Chakrabarty)

cleofe.Maceda@refinitiv.com

#ADNOC #CHINA #CHEMICAL #UAE #ABUDHABI

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