QatarEnergy Signs $6 Billion Deal for 18 LNG Vessels with Chinese Shipbuilder

30.04.2024 - China State Shipbuilding Corporation (CSSC) will construct 18 giant liquefied natural gas (LNG) vessels for QatarEnergy under a deal worth $6 billion.

The new vessels, with a capacity of 271,000 m3 each, will be constructed at China’s Hudong-Zhonghua Shipyard, a wholly-owned subsidiary of CSSC. Eight of the 18 LNG ships are to be delivered in 2028 and 2029, the other ten in 2030 and 2031.

Speaking at the ceremony, Saad Sherida Al-Kaabi, CEO of QatarEnergy, said: “With a total value of almost 6 billion dollars for these ultra-modern, largest ever LNG vessels by size, the agreement we signed today is the industry’s largest single shipbuilding contract ever.”

Currently, Hudong-Zhonghua is already building 12 conventional-sized LNG ships, and the first of these ships is expected to be delivered in the third quarter of this year.

Last month, QatarEnergy announced the signing of time charters for a total of 104 conventional-sized vessels (174,000 m3 each), “representing the largest shipbuilding and leasing program in the industry's history,” the state-owned energy giantsaid in a statement.

In 2023, Qatari LNG supplies to its main customers in China reached almost 17 million t. According to Qatar, it will continue to be one of the most important suppliers of crude oil (8.6 million t), naphtha (2.3 million t), LNG (2.2 million t), helium (650 million cubic feet) and fertilizers, polymers and chemicals (1.6 million t) to the Chinese market in 2023.

Also last year, two of China’s national energy companies participated as partners in Qatar’s North Field Expansion projects with Sinopec acquiring a 1.25% interest in the North Field East project and a 1.875% interest in the North Field South project, while at the same time signing 27-year LNG sales and purchase agreements for a total of 7 million t/y. CNPC, in turn, has acquired a 1.25% interest in the North Field East project and signed a 27-year LNG sales and purchase agreement for 7 million t/y.