QatarEnergy, the state-owned energy company of Qatar, has announced a $4 billion agreement with HD Hyundai Heavy Industries (HHI) of South Korea for the construction of 17 liquefied natural gas (LNG) carriers. The deal is part of QatarEnergy’s second phase of its LNG ship acquisition program, which aims to support its expanding LNG production capacity from the North Field expansion and the Golden Pass project in the US.
The 17 LNG carriers will be built by HHI using the latest technology and environmental standards, and will have a capacity of 174,000 cubic meters each. They are expected to be delivered between 2023 and 2025. QatarEnergy and its affiliates now have 77 new LNG vessels confirmed, including 60 ships contracted in the first phase of the program with Korean and Chinese shipyards. The company said it expects more ships to come in the future.
The agreement was signed in Seoul by Qatar’s Minister of State for Energy Affairs and QatarEnergy’s President and CEO Saad Sherida Al-Kaabi and HHI’s Vice Chairman and CEO Ka Sam-Hyun. Al-Kaabi said the deal was “another milestone in our long-term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general, which is built on the strong and strategic partnership between the State of Qatar and the Republic of Korea.”
He added that the new LNG carriers will help QatarEnergy achieve its goal of increasing its LNG production capacity from 77 million tonnes per annum (Mtpa) to 126 Mtpa by 2027, and will also contribute to reducing carbon emissions and enhancing fuel efficiency. “This emphasizes our continued commitment as a leader in sustainability, innovation, and growth within the LNG industry,” he said.
Ka Sam-Hyun said HHI was proud to take part in the world’s largest LNG new build project and to strengthen the cooperative relationship between Qatar and Korea. “We are fully committed to contributing to this project with the most advanced technology and expertise to ensure safer, more efficient, and reliable transportation of LNG from Qatar to all over the world,” he said.
Qatar is the world’s largest exporter of LNG, supplying about 30% of the global market. The North Field expansion project will increase Qatar’s LNG output by 43% from the current level of 77 Mtpa to 110 Mtpa by 2025. The Golden Pass project, a joint venture between QatarEnergy and ExxonMobil, will add another 16 Mtpa of LNG export capacity from the US by 2025.
The deal with HHI comes amid a surge in demand for LNG in Asia and Europe, as countries seek to switch from coal and oil to cleaner and cheaper natural gas. According to the International Energy Agency, global LNG trade reached a record high of 360 million tonnes in 2020, despite the impact of the pandemic, and is expected to grow further in the coming years.
Source: Qatar Energy
