Qatar Energy to Construct 18 Largest-Ever LNG Vessels in China

Qatar Energy to Construct 18 Largest-Ever LNG Vessels in China By Sruthi Nair - April 29, 2024
Signing Ceremony Between CSSC and Qatar Energy

Signing Ceremony Between CSSC and Qatar Energy

QatarEnergy has entered into a significant agreement with China State Shipbuilding Corporation (CSSC) to bolster its LNG fleet expansion initiative with the construction of 18 cutting-edge QC-Max size LNG vessels. These vessels, boasting a capacity of 271,000 cubic meters each, will be built at China's Hudong-Zhonghua Shipyard, a subsidiary of CSSC, showcasing advanced technological innovation and environmental performance.

The agreement was formalized in Beijing during a special ceremony attended by HE Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and CEO of QatarEnergy, along with Chen Jianliang, Chairman of Hudong-Zhonghua Shipbuilding (Group) Co. Ltd, and Li Hongtao, Chairman of China Shipbuilding Trading Co. Ltd. The event also saw the presence of senior executives from QatarEnergy, QatarEnergy LNG, and Chinese government officials, along with Qatar's Ambassador to China, Mohamed Abdullah Al-Dehaimi.

During the ceremony, HE Saad Sherida Al-Kaabi emphasized the historic nature of the agreement, citing its nearly $6 billion value, making it the largest single shipbuilding contract in the industry's history. Minister Al-Kaabi expressed pride in collaborating with CSSC and Hudong-Zhonghua Shipyard to develop top-tier LNG vessels known for their exceptional environmental standards. He reiterated QatarEnergy's commitment to providing safe and reliable LNG while prioritizing environmental sustainability.

Minister Al-Kaabi also noted that Hudong-Zhonghua Shipyard is currently constructing 12 conventional-size LNG vessels, with the first deliveries expected by the third quarter of the current year.

Of the 18 QC-Max size LNG vessels, eight will be delivered between 2028 and 2029, with the remaining ten slated for delivery between 2030 and 2031.

Last month, QatarEnergy made headlines with the signing of Time Charter Party agreements for a total of 104 conventional-size vessels, marking the largest shipbuilding and leasing program in industry history.

This milestone underscores the growing cooperation between China and Qatar, particularly in the energy sector. In 2023, Qatari LNG supplies to China's key customers reached nearly 17 million tons. Qatar also emerged as a major supplier of crude oil, naphtha, LPG, helium, and various petrochemical products to the Chinese market during the same year.

Furthermore, 2023 saw two of China's national energy companies participating in Qatar's North Field Expansion projects, with Sinopec and CNPC acquiring interests and signing significant LNG sales and purchase agreements, further solidifying the energy partnership between the two nations.


Source: The peninsula Qatar

By Sruthi Nair - April 29, 2024
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