QatarEnergy inks historic $6 billion agreement to build 18 ultra-modern LNG vessels in China

LNG supplies from Qatar to China reached around 17 million tons in 2023
QatarEnergy inks historic $6 billion agreement to build 18 ultra-modern LNG vessels in China
Last month, QatarEnergy announced signing agreements for 104 conventional-size vessels

In a landmark agreement, QatarEnergy has joined forces with China State Shipbuilding Corporation (CSSC) to construct 18 ultra-modern QC-Max size LNG vessels worth nearly $6 billion. This significant addition underscores QatarEnergy’s commitment to expanding its LNG fleet and enhancing its global presence in the energy sector.

The construction of the QatarEnergy’s new vessels, boasting a remarkable capacity of 271,000 cubic meters each, will take place at China’s Hudong-Zhonghua Shipbuilding, a subsidiary of CSSC. These vessels will feature state-of-the-art technological innovations and prioritize environmental performance.

Saad Sherida Al-Kaabi, minister of state for energy affairs, president and CEO of QatarEnergy, Chen Jianliang, chairman of Hudong‐Zhonghua Shipbuilding (Group) Co. Ltd, and Li Hongtao, chairman of China Shipbuilding Trading Co. Ltd signed the agreement in Beijing.

Largest ever single shipbuilding contract

Al-Kaabi highlighted the historic nature of the agreement, with a total value nearing $6 billion, making it the largest single shipbuilding contract in the industry’s history. This monumental deal with China underscores QatarEnergy’s unwavering commitment to providing safe, reliable and environmentally sustainable LNG solutions.

During the agreement ceremony, Al-Kaabi revealed that 12 conventional-size LNG vessels are currently under construction at Hudong-Zhonghua. QatarEnergy expects to receive the vessels during the third quarter of this year.

Moreover, QatarEnergy will receive eight of the 18 QC-Maxsize LNG vessels in 2028 and 2029. Meanwhile, the company will receive the other 10 in 2030 and 2031.

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Largest shipbuilding and leasing program

Last month, QatarEnergy announced signing Time Charter Party agreements for 104 conventional-size vessels, marking it the largest shipbuilding and leasing program in the history of the industry. QatarEnergy’s agreement with China further highlights the growing cooperation between China and Qatar in the energy sector.

LNG supplies from Qatar to China reached around 17 million tons in 2023. Qatar was also one of China’s major suppliers of crude oil, naphtha, LPG and helium.

Last year also witnessed the participation of two Chinese national energy companies as partners in Qatar’s North Field Expansion projects with Sinopec. Moreover, China signed 27-year LNG sales and purchase agreements for seven million tons per annum with Qatar.

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