(Yicai) July 24 -- A subsidiary of China State Shipbuilding Corporation has secured an order to build as many as 13 liquefied chemical gas tankers for AW Shipping, a joint venture between United Arab Emirates' ADNOC Logistics & Services and Chinese chemicals giant Wanhua Chemical Group.

Jiangnan Shipyard Group will build 9 very large ethane carriers with a capacity of 99,000 cubic meters each and two to four very large ammonia carriers with a capacity of 93,000 cbm each, it announced late yesterday.

Jiangnan Shipyard did not disclose the construction or delivery schedule of the carriers or any financial data. However, the construction cost of a single VLEC with a capacity of 99,000 cbm can reach USD128 million, according to previous reports.

The VLECs will have the largest cargo capacity among the same type of vessels and will be suitable for long-haul transport of multiple liquefied gases, including ethane, ethylene, and petroleum gases, Jiangnan Shipyard noted. The VLACs will also have the largest transport capacity among carriers of its type and can also be used to transport liquefied petroleum gases such as propane and butane, it added.

Established in 2020, AW Shipping mainly focuses on ocean freight of LPGs. It previously ordered multiple LPG carriers from Jiangnan Shipyard, with the first large-sized such ships starting operations in October 2022.

The United States is the world's largest shale gas producer, which contains a significant amount of ethane, a raw material used to produce downstream chemical products. Due to the limited local demand, the US exports a huge amount via ocean freight.

Shares of China CSSC Holdings [SHA: 600150], which owns all of Jiangnan Shipyard's stock, closed 1.5 percent higher at CNY42.34 (USD5.82) apiece in Shanghai today.

Editor: Martin Kadiev