QatarEnergy said it signed an agreement with China State Shipbuilding Corporation (CSSC) for construction of 18 ultra-modern QC-Max size liquefied natural gas (LNG) vessels, a major boost in its LNG fleet expansion program.
The new vessels, with a capacity of 271,000 cubic meters each, will be constructed at China’s Hudong-Zhonghua Shipyard, a CSSC wholly-owned subsidiary, and will feature state-of-the-art technological innovation and environmental performance.
The agreement was signed in Beijing by Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, the President and Chief Executive Officer (CEO) of QatarEnergy, and by Chen Jianliang, Chairman of Hudong‐Zhonghua Shipbuilding (Group) Co. Ltd. and Li Hongtao, Chairman of China Shipbuilding Trading Co. Ltd. during a special ceremony attended by senior executives from QatarEnergy, QatarEnergy LNG, and China State Shipbuilding Corporation. The signing ceremony was attended by several senior Chinese government officials and Mohamed Abdullah Al-Dehaimi, Qatar’s Ambassador in the People’s Republic of China.
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Speaking at the ceremony, Saad Sherida Al-Kaabi, 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.”
Minister Al-Kaabi added: “And as we take this important step together, I would like to affirm QatarEnergy’s determination to live up to our commitment to provide a safe and reliable energy source in the form of LNG, while always giving priority to environmental sustainability.”
He also highlighted that 12 conventional-size LNG vessels are currently under construction at Hudong-Zhonghua, and that delivery of the first such vessels is expected by the third quarter of this year.
Eight of the 18 QC-Max size LNG vessels will be delivered in 2028 and 2029, while the other ten will be delivered in 2030 and 2031.
QatarEnergy also said it signed long-term time charter party (TCP) agreements with three ship owners for the operation of nine of the 18 LNG vessels that will be built in Hudong-Zhonghua shipyards.
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The long-term TCP agreements cater for operation of the vessels by affiliates of China Merchants Group, Shandong Marine Group, and China LNG Shipping (Holdings) Limited. All nine vessels will have a capacity of 271,000 cubic meters each.
During a separate ceremony, Minister Al-Kaabi said: “Our partnerships with China’s shipbuilding industry and the esteemed shipowners, will ensure the long-term operation, deployment, and management of these vessels in a manner that maximizes their potential over decades to come.”
Last month, QatarEnergy announced the signing of TCP agreements for a total of 104 conventional-size vessels (174,000 cubic meters) constituting the largest shipbuilding and leasing program ever in the history of the industry.
QatarEnergy said that in 2023, Qatari LNG supplies to its main customers in China reached almost 17 million tons. Also in 2023, Qatar was one of the major suppliers of crude oil (equivalent of 8.6 million tons), Naphtha (2.3 million tons), LPG (2.2 million tons), Helium (650 million cubic feet), and fertilizers, polymers and chemicals (1.6 million tons) to the Chinese market.
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Two of China’s national energy companies joined as partners last year 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 seven million tons per annum. 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 four million tons per annum.
