Saturday 13 July 2024

QatarEnergy enters $6bn deal for 18 largest LNG vessels

BEIJING, April 30, 2024

QatarEnergy has signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of 18 ultra-modern QC-Max size LNG vessels, marking a significant addition to its historic LNG fleet expansion programme.
The new vessels, with a capacity of 271,000 cubic metres each, will be constructed at China’s Hudong-Zhonghua Shipyard, a CSSC wholly-owned subsidiary, and will feature state of the art technological innovation and environmental performance.
The agreement was signed in Beijing by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, and by Chen Jianliang, Chairman of Hudong‐Zhonghua Shipbuilding (Group) Co and Li Hongtao, Chairman of China Shipbuilding Trading Co during a special ceremony attended by senior executives from QatarEnergy, QatarEnergy LNG, and China State Shipbuilding Corporation. The signing ceremony was attended by a number of senior Chinese government officials and Mr. Mohamed Abdullah Al-Dehaimi, Qatar’s Ambassador in the People’s Republic of China.
Al-Kaabi, said: “With a total value of almost $6 billion for these ultra-modern, largest ever LNG vessels by size, the agreement we signed today is the industry’s largest single shipbuilding contract ever.”
Al-Kaabi added: “It is our honour to continue working with China State Shipbuilding Corporation and Hudong-Zhonghua Shipyard to develop and build some of the top-tier LNG vessels renowned for their exceptional environmental qualities. And as we take this important step together, I would like to affirm QatarEnergy’s determination to live up to our commitment to provide a safe and reliable energy source in the form of LNG, while always giving priority to environmental sustainability.”
Al-Kaabi also highlighted that 12 conventional-size LNG vessels are currently under construction at Hudong-Zhonghua, and that delivery of the first such vessels is expected by the third quarter of this year.
Eight of the 18 QC-Max size LNG vessels will be delivered in 2028 and 2029, while the other 10 will be delivered in 2030 and 2031.
Meanwhile, QatarEnergy also signed long-term time charter party (TCP) agreements with three ship owners for the operation of nine of the new, ultra-modern LNG vessels.
The long-term TCP agreements cater for the operation of the vessels by affiliates of China Merchants Group, Shandong Marine Group, and China LNG Shipping (Holdings) Limited. All nine vessels will have a capacity of 271,000 cubic metres each.
Minister Saad Sherida Al-Kaabi signed three separate sets of agreements agreements with: 
* Wang Yongxin, President of CMES, for the operation of four vessels, 
* Li Maozhong, Chairman of Shandong Marine Energy for the operation of three vessels, and 
* Cong Jian, General Manager of CLNG, for the operation of two vessels. 
Al-Kaabi expressed confidence in the shipowners’ unique capabilities, which will ensure the operation of these vessels to the highest and most advanced safety, technical and environmental standards. - TradeArabia News Service


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