QatarEnergy Places $6B Order for 18 LNG Vessels to China’s CSSC
QatarEnergy has signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of 18 ultra-modern QC-Max size LNG vessels, marking a significant addition to 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.
Eight of the 18 QC-Max size LNG vessels will be delivered in 2028 and 2029, while the other 10 will be delivered in 2030 and 2031, according to QatarEnergy.
Earlier in 2024, QatarEnergy announced the signing of time charter party 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.
“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,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy.
Al-Kaabi added 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 2024.
This agreement spotlights the growing cooperation between China and Qatar, especially in the energy sector.
In 2023, Qatari LNG supplies to its main customers in China reached almost 17 million tons. Also in 2023, Qatar was also 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.
The year 2023 also witnessed the participation of two of China’s national energy companies as partners in Qatar’s prized 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.