Qatar starts industry’s biggest LNG carrier fleet program
Qatar Petroleum (QP) has signed the industry’s largest-ever single LNG vessel order with South Korea’s “Big 3” shipyards, as it presses ahead with its liquefaction expansion.
The company signed on Monday three agreements worth $19.23 billion, securing more than 100 ships, Kallanish Energy reports.
Under the deal, Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) will reserve a major portion of their shipbuilding capacity through 2027 for QP.
“With the conclusion of these milestones agreements, we have everything in place to commence the largest LNG shipbuilding program in history,” said QP CEO Saad Sherida Al-Kaabi. “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.”
The mega-deal will be crucial for meeting future shipping requirements from QP’s North Field expansion and its LNG projects in the U.S., as well as replacing part of Qatar’s existing LNG fleet.
The vessels will feature slow speed dual fuel engines, also running on LNG as fuel. The Korean shipbuilders said they will deliver “on-time” the best quality LNG carriers, with more efficient and eco-friendly technology.
Last month, QP signed a $3.02 billion deal with China’s Hudong-Zhonghua Shipbuilding Group to secure shipyard capacity. The world’s No.1 LNG exporter is boosting its production capacity to 126 million tonnes per annum (Mtpa) from the current 77 Mtpa.