Oil Company Orders Construction of 100 LNG Ships from Korean Shipyards, the Largest Fleet in Naval History!

Qatar Petroleum signed three agreements today to reserve the LNG shipbuilding capacity in the Republic of Korea to be used for future requirements of Qatar Petroleum’s LNG carrier fleet, including those for ongoing expansion projects in the North Field and in the United States.

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Under the agreements, the “Big 3” Korean shipyards – Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI), and Samsung Heavy Industries (SHI) – will reserve a significant portion of their LNG shipbuilding capacity for Qatar Petroleum in 2027.

The agreements were signed by Mr. Saad Sherida Al-Kaabi, Minister of State for Energy, President and CEO of Qatar Petroleum at a virtual signing ceremony attended by His Excellency Mr. Sung Yun-mo, Minister of Trade, Industry and Energy of the Republic of Korea. Also participating were Sheikh Khalid Bin Khalifa Al Thani, CEO of Qatargas, the CEOs of the Korean shipyards, senior representatives from the Korean Ministry of Trade, Industry and Energy, along with executives from Qatar Petroleum, Qatargas, and the three Korean shipyards.

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On the Korean side, the agreement with DSME was signed by Mr. Sung Geun Lee, President and CEO of DSME, the agreement with HHI was signed by Mr. Sam H. Ka, President and Board Member of HHI, and the agreement with SHI was signed by Mr. Joon Ou Nam, President and CEO of SHI.

Speaking at the signing ceremony, His Excellency Minister Al-Kaabi said: “The signing of today’s agreements with the three respected Korean companies reflects our commitment to the North Field expansion projects, even during these extraordinary times. As I stated before, we are moving full speed ahead with the North Field expansion projects to increase Qatar’s LNG production capacity from 77 million today to 126 million tons per year by 2027 to ensure a reliable supply of additional clean energy to the world at a time when investments to meet these requirements are most needed. These agreements will ensure our ability to meet our future LNG fleet requirements to support our expanding production capacity and long-term fleet replacement needs.”

The Minister His Excellency Al-Kaabi added: “With the completion of these agreements, we are all set to start the largest LNG shipbuilding program in history. We have secured approximately 60% of the global LNG shipbuilding capacity by 2027 to meet the needs of our LNG carrier fleet in the next 7-8 years, which could reach over 100 new vessels with a program value exceeding 70 billion Qatari Rials.”

His Excellency Minister Al-Kaabi emphasized Korea’s position as a strategic energy partner with the State of Qatar and thanked His Excellency Minister Sung Yun-mo and the Korean companies for their role in supporting strong trade relations between Qatar and Korea, hoping that this milestone will take the relationship with Korean business partners to greater and broader horizons.

His Excellency Minister Al-Kaabi said: “The new LNG vessels will be equipped with next-generation twin low-speed engines, utilizing LNG as fuel. This will ensure the most efficient performance and compliance with the latest global emissions and environment regulations. We will continue to work on reducing emissions from our fleet to protect the regional and global environment, in line with Qatar’s National Vision environmental goals for 2030.”

“I would like to take this opportunity to thank the teams at DSME, HHI, and SHI for all their hard work in materializing these agreements during these difficult times. I would also like to express my deep gratitude to His Excellency Mr. Sung for his leadership and great support for this effort, in line with our mutual desire to develop the already excellent relations between Korea and Qatar, especially in the unusual circumstances the world is currently facing. I am also very grateful to Sheikh Khalid Bin Khalifa Al Thani, CEO of Qatargas, and the teams from Qatar Petroleum and Qatargas, whose dedicated efforts were key to achieving this agreement,” concluded His Excellency Minister Al-Kaabi.

His Excellency Minister Sung Yun-mo thanked His Excellency Minister Al-Kaabi for inviting him to participate in this important event.

Welcoming the signing ceremony, His Excellency Minister Sung Yun-mo said: “Despite the recent difficulties faced by the international community, today’s signing was made possible by the long-standing mutual trust between Korea and Qatar, as well as the excellent risk management capability of His Excellency Minister Al-Kaabi.”

His Excellency Minister Sung Yun-mo also expressed his commitment to enhancing economic cooperation with Qatar, adding: “I will spare no effort to further strengthen our bilateral cooperation in energy and shipbuilding, as well as diversify our cooperation in various fields, including ICT, health, infrastructure construction and more.”

Also speaking at the virtual signing ceremony, Mr. Sung Geun Lee, President and CEO of Daewoo Shipbuilding & Marine Engineering, said: “I would like to express our sincere gratitude to Qatar Petroleum for choosing DSME as a partner for this historic Mega LNG project. I have no doubt that Qatar will reinforce its position as the world’s top LNG exporter through this great project. As world-class shipbuilding and maritime specialists, DSME is pleased to contribute to this project with our cutting-edge LNG technologies, along with our environmentally friendly and smart ship expertise. Just as we did a decade ago for Qatar’s previous project, we will invite you to witness our production in person at our advanced Okpo shipyard soon.”

For his part, Mr. Sam H. Ka, President and Board Member of Hyundai Heavy Industries, said: “We are very proud and excited to work with Qatar Petroleum on this unprecedented and largest LNG project in the world. We firmly believe that this project will enhance Qatar’s global reputation as the leading global LNG supplier and effectively contributes to the growing global market demand for cleaner energy of the future. To this end, we will join forces with Qatar Petroleum and Qatargas with the highest standards of excellence for the successful construction and delivery of vessels more efficient and environmentally friendly than ever.”

Joon Ou Nam, President and CEO of Samsung Heavy Industries, said: “I am deeply grateful for the signing of this contract between Qatar Petroleum and Samsung Heavy Industries. SHI promises to deliver the highest quality LNG carriers with timely delivery. In particular, we will build the best LNG carriers for Qatar Petroleum in terms of efficiency, reliability, and safety, through the technology and workforce developed at our company. I hope that today’s event provides momentum to further strengthen our cooperative economic relationship between Qatar and Korea.”

The Qatar Petroleum LNG carrier fleet program is the largest of its kind in the history of the LNG industry and will play a key role in meeting the shipping requirements of Qatar Petroleum’s local and international LNG projects, as well as to replace part of the existing LNG fleet in Qatar.

Source: Qatar Petroleum