Thursday 2 July 2020

Saad Sherida Al-Kaabi, Minister of State for Energy Affairs

QP signs historic LNG shipbuilding deals

DOHA, 29 days ago

Qatar Petroleum (QP) has signed agreements for an LNG carrier fleet programme, the largest of its kind in the history of the LNG industry. The deals will play a pivotal role in meeting the shipping requirements of QP’s local and international LNG projects, as well as replacing part of Qatar's existing LNG fleet.
QP entered into three agreements to reserve LNG ship construction capacity in the Republic of Korea to be utilised for QP’s future LNG carrier fleet requirements, including those for the ongoing expansion projects in the North Field and in the US.
Under the agreements, the “Big 3” Korean shipyards - Daewoo Shipbuilding & 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 through the year 2027.
The agreements were signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum in a virtual signing ceremony attended by Sung Yun-mo, the Minister of Trade, Industry & Energy of the Republic of Korea.
On the Korean side, the agreement with DSME was signed by Sung Geun Lee, President and CEO of DSME, with HHI by Sam H Ka, President and Board member of HHI, and the agreement with SHI was signed by Joon Ou Nam, President and CEO of SHI.
Al-Kaabi said: “The signing of the agreements with the three esteemed Korean companies reflects our commitment to the North Field expansion projects, even during these extraordinary times. 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.”
He added: “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 per cent 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 QR70 billion.”
Al-Kaabi said the new LNG vessels will be equipped with the latest generation slow speed dual fuel engines, utilising LNG as a fuel. “This will ensure the most efficient performance and compliance with the latest global emission and environmental regulations. 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.”
Lee said: "I would like to express our sincere appreciation to Qatar Petroleum for choosing DSME as a partner for this historic Mega LNG project in Qatar. I have no doubt that Qatar will reinforce its position as the world’s leading LNG exporter through this great project. As the world’s first-class shipbuilding and maritime specialists, DSME is delighted to contribute to this project with our cutting-edge LNG technologies together with our eco-friendly and smart ship expertise. In the same manner as a decade ago for the previous Qatar project, we will soon invite you to witness our production in person at our advanced Okpo shipyard." -–Tradearabia News Service


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