Qatar Petroleum Enters Deal to Reserve LNG Shipyard in China until 2027
Qatar Petroleum has entered into an agreement to reserve LNG ship construction capacity in China to be utilised for the company’s future LNG carrier fleet requirements, including those of its ongoing North Field expansion projects.
The agreement was entered into between Qatar Petroleum and Hudong-Zhonghua Shipbuilding Group Co, Ltd (Hudong), a wholly owned subsidiary of China State Shipbuilding Corporation Limited (CSSC). Pursuant to the agreement, a significant portion of Hudong’s LNG ship construction capacity will be reserved for Qatar Petroleum until 2027.
The agreement was signed by the Minister of State for Energy Affairs and President/CEO of Qatar Petroleum, HE Saad Sherida Al Kaabi and CSSC Chairman Lei Fanpei, in a virtual ceremony. The signing was also witnessed by Qatargas CEO Sheikh Khalid Bin Khalifa Al Thani and Hudong Chairman Chen Jianliang, as well as senior executives from Qatar Petroleum, Qatargas, CSSC and Hudong.
HE Minister Al Kaabi said that by entering into this agreement, they are on the right track to ensuring that future LNG fleet requirements will be met in due time to support the increasing LNG production capacity.
Today, we have taken yet another concrete step to reinforce Qatar’s commitment to its global reputation as a safe and reliable LNG producer at all times and under all circumstances.
He added that the value of this landmark agreement has the potential to be well in excess of QAR11 billion, depending on requirements and the extent of China’s LNG shipbuilding capacity expansion. To this end, he said that Qatar Petroleum is pleased and proud to support the expansion of the LNG ship construction capacity in China and looks forward to further growth in the future.
Also speaking at the virtual signing ceremony, CSSC Chairman Lei Fanpei explained that the 174,000 cubic metre LNG carrier for Qatar Petroleum is the latest generation of LNG carrier design customised by CSSC for Qatar.
He said that the carrier has the world’s leading performance for efficiency, reliability and environmental conservation. The agreement, he added, will be an important milestone for the cooperation of CSSC Group and Qatar Petroleum, and will make new contributions to consolidating the economic cooperation and friendship between Qatar and China.
The North Field expansion projects will increase Qatar’s LNG production capacity from 77 million tonnes per annum to 126 million tonnes per annum. Qatar Petroleum’s LNG carrier fleet programme is the largest of its kind in the history of the LNG industry and will play a pivotal role in meeting the shipping requirements of Qatar Petroleum’s local and international LNG projects, as well as replacing some of Qatar’s existing LNG fleet.
For updates and more information, visit qp.com.qa.