Qatar Spends $4B on 17 LNG Carriers From HD Hyundai
State-owned energy giant QatarEnergy has launched the second phase of its LNG ship acquisition program by signing an agreement with HD Hyundai Heavy Industries (HHI) for 17 ultra-modern LNG carriers at a cost of $3.9 billion.
The company, which is in the middle of an aggressive fleet expansion drive, said that the order brings the total number of confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates to 77. Korean and Chinese shipyards hold all of the contracts.
The newbuilds will support the company’s expanding LNG production capacity from the North Field LNG expansion and Golden Pass LNG export projects, as well as its long-term fleet replacement requirements.
QatarEnergy's North Field East expansion project is the single largest project in the history of the LNG industry, and it will have a capacity of 33 million tonnes per annum. Projected to cost nearly $30 billion, the project will raise the country’s LNG production capacity from 77 million tonnes annually to 110 million tonnes.
The project, which is being implemented in partnership with Italian company Eni and British multinational Shell, is expected to start production before the end of 2025.
The Golden Pass LNG project, which is located on the Gulf Coast near Sabine Pass, Texas, and which QatarEnergy controls a 70 percent stake, will have a capacity of 15.6 million metric tonnes of LNG per year. ExxonMobil controls the remaining 30 percent stake in the project.
“These 17 LNG carriers will be built by HD Hyundai Heavy Industries to the highest technical and environmental standards and specifications. Further, the vessels are designed to achieve optimal fuel efficiency and significant reduction in carbon emissions. This emphasizes our continued commitment as a leader in sustainability, innovation and growth within the LNG industry,” said Saad Sherida Al-Kaabi, Qatar Minister of State for Energy Affairs.
QatarEnergy notes that its LNG ship-building program is the largest of its kind in the history of the LNG industry.
“We are fully committed to contributing to this project with the most advanced technology and expertise to ensure safer, more efficient and reliable transportation of LNG from Qatar to all over the world,” said Ka Sam-hyun, HD Korea Shipbuilding & Offshore Engineering (KSOE) Vice Chairman & CEO.