Qatar Petroleum to expand LNG carriers fleet with $19.2bn deals with Korean firms

Qatar Petroleum has signed deals worth more than QAR70bn ($19.23bn) with three South Korean LNG shipbuilders to build liquefied natural gas carriers (LNG carriers).

Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI), and Samsung Heavy Industries (SHI) are the three Korean shipyards which will reserve a major portion of their LNG ship construction capacity for Qatar Petroleum through the year 2027.

The LNG shipbuilding transactions will enable Qatar Petroleum to secure over 100 LNG carriers that will become a part of its future LNG carrier fleet requirements. The petroleum giant said the LNG carriers will be used for its current expansion projects in the North Field offshore Qatar, in the US, and in other regions.

Joon Ou Nam – CEO and President of Samsung Heavy Industries said: “I am deeply grateful for the signing of this agreement between Qatar Petroleum and Samsung Heavy Industries. SHI promises to deliver the best quality LNG carriers with on-time delivery.

“Particularly, we will build the best LNG carriers for Qatar Petroleum in terms of efficiency, reliability and HSE through the technology and workmanship developed within our company.”

The new LNG ships to be delivered under the three contracts are expected to have the latest generation slow speed dual fuel engines, while using LNG as a fuel. Furthermore, the LNG carriers are likely to have the most efficient performance and comply with the latest global emission and environmental regulations because of the technology used by their fuel engines.

Qatar Petroleum to expand LNG carriers fleet with $19.2bn deals with Korean firms. Photo courtesy of Qatar Petroleum.

Saad Sherida Al-Kaabi – Qatar Minister of State for Energy Affairs and also Qatar Petroleum President and CEO said:  “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.”