Abu Dhabi National Oil Company (ADNOC) subsidiary ADNOC Logistics and Services (ADNOC L&S) has formed a joint venture (JV) with Wanhua Chemical Group.
The JV will be named AW Shipping Limited and is included in Abu Dhabi Global Market (ADGM) in the UAE.
The JV boosts the partnership between ADNOC and the Chinese companies. It also adds on to the bilateral relations between the UAE and China.
AW Shipping will own and operate a fleet of modern product tankers and very large gas carriers (VLGCs).
The company will transport liquefied petroleum gas (LPG) cargoes and other petroleum products from the ADNOC Group to Wanhua Group’s manufacturing bases.
The JV also plans to pursue further market opportunities to achieve maximum fleet efficiency.
It follows a ten-year LPG supply contract that was signed between ADNOC and Wanhua in November 2018.
ADNOC group CEO and UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber said: “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 organisations.
“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.”