Qatari state-owned oil and gas company Qatar Petroleum has entered into what it says “are the largest LNG shipbuilding agreements in history to secure more than 100 ships valued in excess of QR 70 billion [USD19,2 billion] to cater for its LNG growth plans.”
Qatar Petroleum said Monday it had entered into three agreements with Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI), and Samsung Heavy Industries (SHI), respectively, to reserve LNG ship construction capacity in South Korea, to be used for Qatar Petroleum’s future LNG carrier fleet requirements, including those for the ongoing expansion projects in Qatar’s offshore North Field and in the United States.
Under the agreements, the “Big 3” Korean shipyards will reserve a major portion of their LNG ship construction capacity for Qatar Petroleum through the year 2027.
Speaking at a virtual signing ceremony, Saad Sherida Al-Kaabi, the President and CEO of Qatar Petroleum said: “The signing of today’s agreements with the three esteemed Korean companies reflects our commitment to the North Field expansion projects, even during these extraordinary times.”
“As I have previously stated, we are moving full steam ahead with the North Field expansion projects to raise Qatar’s LNG production capacity from 77 million today to 126 million tons per annum by 2027 to ensure the reliable supply of additional clean energy to the world at a time when investments to meet these requirements are most needed. These agreements will ensure our ability to meet our future LNG fleet requirements to support our expanding LNG production capacity and long-term fleet replacement requirements.”
Al-Kaabi further said: “With the conclusion of these milestones agreements, we have everything in place to commence the largest LNG shipbuilding program in history. We have secured approximately 60% of the global LNG shipbuilding capacity through 2027 to cater for our LNG carrier fleet requirements in the next 7-8 years, which could reach 100+ new vessels with a program value in excess of 70 billion Qatari Riyals.”
According to the QP CEO, the new LNG vessels will be equipped with the latest generation slow speed dual-fuel engines, utilizing LNG as a fuel.
“This will ensure the most efficient performance and compliance with the latest global emission and environmental regulations. We will continue working on reducing emissions from our fleet to protect the regional and global environment in line with the environmental objectives of the Qatar National Vision 2030,” Al-Kaabi said.
Qatar Petroleum in April signed a deal to reserve LNG ship construction capacity in China in a deal potentially worth more than $3 billion.