The formation of the new company, called AW Shipping and incorporated in Abu Dhabi, follows the signing of a 10-year liquefied petroleum gas (LPG) supply contract between the two partners in November 2018. Stakes in the jv were not disclosed.

AW Shipping will own and operate a fleet of very large gas carriers and modern product tankers, transporting LPG and other petroleum products sourced from ADNOC and global suppliers to Wanhua’s manufacturing bases both in China and worldwide. ADNOC added that the jv may also pursue other market opportunities in order to deliver maximum fleet efficiency.

The establishment of AW Shipping supports ADNOC’s smart growth and value creation strategy and is another example of how it is stretching the margin from every molecule that it produces, refines, ships and sells, while also forging stronger partnerships in key growth markets, said ADNOC’s CEO, Sultan Ahmed Al Jaber, who is also the United Arab Emirates’ Minister of Industry and Advanced Technology.

Last year, ADNOC L&S transported more than 20 million t of various oil & gas products and dry bulk commodities.