State-owned Qatar Petroleum has entered into shipbuilding agreements with South Korea’s “Big 3” shipyards for the construction of up to 100 LNG carriers valued at more than US$19 billion.
The deal is beleived to be the largest LNG shipbuilding program in history.
Under the agreement, Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) will reserve a majority portion of their LNG shipbuilding capacity for Qatar Petroleum through 2027.
The agreement covers the construction of up to 100 ships. At that level, the program earmarks approximately 60% of the global LNG shipbuilding capacity through 2027, according to Qatar Petroleum.
The ships will support Qatar Petroleum’s large expansion projects in the North Field, located off Qatar’s northeast coast, and in the United States.
“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,” said His Excellency Minister Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affair. “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.”
“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,” added His Excellency Minister Al-Kaabi.