Adnoc unit, Chinese firm launch shipping JV

Adnoc L&S, the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company, announced on Tuesday the formation of a joint venture shipping company with China's Wanhua Chemical Group.
The Abu Dhabi-based JV, AW Shipping, will own and operate a fleet of very large gas carriers (VLGCs) and modern product tankers, Adnoc L&S said.
The JV, which is incorporated in Abu Dhabi Global Market following a 10-year liquefied petroleum gas supply contract signed by Adnoc and Wanhua in 2018, 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 strategic joint venture with Wanhua Chemical Group is a win-win partnership that will deliver greater value and efficiency for both 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," he said.
Adnoc L&S said the JV may also pursue other market opportunities to deliver maximum fleet efficiency.
Liao Zengtai, chairman of Wanhua Chemical Group, said the joint venture was established with the concerted efforts of both parties.
"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. More importantly, the cooperation will make contribution to the 'One Belt, One Road' project," said Zengtai.
"This strategic JV agreement further strengthens the collaboration between Adnoc and Chinese companies and builds on the deep-rooted bilateral relations between China and the UAE. The JV underscores Adnoc's focus on value-creating deals and will support the delivery of its 2030 smart growth strategy," said the statement.
In 2019, Adnoc L&S transported over 20 million metric tonnes of various oil & gas products and dry bulk commodities.
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