UAE - Mubasher: ADNOC Logistics & Services, the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company (ADNOC) has formed a new strategic joint venture (JV) with Wanhua Chemical Group (Wanhua).

The cooperation with Wanhua Group, one of the world's leading producers for methylene diphenyl diisocyanate (MDI), fosters ADNOC's relationship with Chinese companies, according to a press release on Tuesday.

Incorporated in Abu Dhabi Global Market (ADGM), the new JV, AW Shipping Limited, will own and run a fleet of very large gas carriers (VLGCs) and modern product tankers.

The JV will also transfer liquefied petroleum gas (LPG) cargoes from ADNOC and global suppliers to Wanhua Group’s manufacturing bases in China and around the world.

The establishment of AW Shipping came after ADNOC and Wanhua had signed a 10-year LPG supply contract in November 2018.

The UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, Sultan Ahmed Al Jaber, commented: "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."

Meanwhile, the chairman of Wanhua Chemical Group, Liao Zengtai, remarked: "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."