Qatar Petroleum (QP) entered into three agreements recently to reserve an LNG ship construction capacity in the Republic of Korea to be utilised for the company’s future LNG carrier fleet requirements, including those for the ongoing expansion projects in the North Field and in the United States.
Under the agreements, the ‘Big 3’ Korean shipyards – Daewoo Shipbuilding and Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) – will reserve a major portion of their LNG ship construction capacity for Qatar Petroleum until 2027.
The agreements were signed by the Minister of State for Energy Affairs and President/CEO of Qatar Petroleum HE Saad Sherida Al Kaabi, during a virtual signing ceremony with the Minister of Trade, Industry and Energy of the Republic of Korea, HE Sung Yun-mo. Also attending were Qatargas CEO Sheikh Khalid Bin Khalifa Al Thani, together with other top Korean officials as well as executives from QP, Qatargas and the three Korean shipyards.
HE Minister Al Kaabi said they are moving full steam ahead with the North Field expansion projects to raise Qatar’s LNG production capacity from 77 million to 126 million tonnes 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. He added that these agreements will ensure their ability to meet future LNG fleet requirements to support their expanding LNG production capacity and long-term fleet replacement requirements.
With the conclusion of these milestone agreements, we have everything in place to commence the largest LNG shipbuilding programme in history.
QP has secured approximately 60% of the global LNG shipbuilding capacity until 2027 to cater to the LNG carrier fleet requirements of the company in the next seven to eight years, which could reach over 100 new vessels, with a programme value in excess of QAR70 billion.
HE Al Kaabi also highlighted Korea’s position as a key and strategic energy partner of the State of Qatar and thanked HE Minister Sung Yun-mo and the Korean companies for their role in supporting the strong Qatar-Korean business relations. He said that he hoped that the milestone takes the relationship with Korean business partners to greater and wider horizons.
The new LNG vessels will be equipped with the latest generation slow speed dual fuel engines, utilising LNG as fuel. This will ensure the most efficient performance and compliance with the latest global emission and environmental regulations.
HE Minister Sung Yun-mo also expressed his gratitude and for being part of this important event.
Despite the recent difficulties facing the international community, today’s signing was made possible by the long-standing mutual trust between Korea and Qatar as well as the outstanding risk management capability of HE Minister Al Kaabi.
The minister also expressed his commitment to enhance economic cooperation with Qatar and said that they will further strengthen bilateral cooperation in energy and shipbuilding, as well as diversify cooperation across various fields including ICT, healthcare, plant construction and more.
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 part of Qatar’s existing LNG fleet.
For updates and more information, visit qp.com.qa.