Qatar Petroleum (QP) has signed the largest shipbuilding contract in history to shore up its LNG growth plans, this is said to account for around 60% of global LNG shipbuilding capacity until the late 2020s.
QP said the deal to secure more than 100 ships was valued at more than 70 billion riyals ($19.3bn). Three agreements were reached for construction by the three top Korean shipyards, reserving capacity until the end of 2027.
The deals were signed with Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI).
Agreements were signed by Qatari Minister of State for Energy Affairs Saad Sherida Al-Kaabi, who is also the CEO and president of QP. A virtual signing ceremony was held with South Korean Minister of Trade, Industry & Energy Sung Yun-mo.
Also in virtual attendance was Qatargas CEO Khalid Bin Khalifa Al Thani and CEOs of the Korean shipyards, in addition to various other officials.
Signing for DSME was its president Sung Geun Lee, for HHI was its president Sam H. Ka and for SHI its president and CEO Joon Ou Nam.
Al-Kaabi said the deal demonstrated Qatar’s commitment to its expansion plans, even despite current pressure on the energy industry. “We are moving full steam ahead with the North Field expansion projects to raise Qatar’s LNG production capacity from 77 million [tonnes per year] today to 126 million [tpy] 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.”
The deal is the largest shipbuilding LNG programme in history.
The new vessels will be equipped with the latest generation slow speed dual fuel engines, Al-Kaabi said, using LNG as a fuel. “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.”
Updated at 4:16 pm to correct conversion of 70 billion riyals into $19.23 billion.