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Qatar signs deal for first of 120 LNG newbuilding slots with Chinese shipbuilder

Christian Fernsby ▼ | April 25, 2020
According to TradeWinds, the world’s biggest shipping news service, Qatar Petroleum (QP) has signed a milestone LNG newbuilding berth reservation deal for a potential 16 vessels worth 20 billion yuan (US$2.85 billion) with Hudong-Zhonghua Shipbuilding Group.
Qatar Petroleum
LNG   Qatar Petroleum
The report added that other agreements with South Korean shipbuilders are set to follow.

Topics: Qatar LNG

The contract with the Chinese shipbuilder involves 16 units — eight confirmed units plus eight optional units. They will be delivered between 2024 and 2025. Each vessel is approximately 175,000 cubic meters in size and costs approximately US$180 million.

The agreement marks the start of the world’s largest LNG carrier procurement project by Qatar. The project has received much attention from the three major Korean shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding and Marine Engineering (DSME). They all submitted a final proposal, as did China’s Hudong-Zhonghua.

“This agreement was reportedly reached on the condition that China buys natural gas from Qatar. In other words, Hudong-Zhonghua did not beat the Korean companies in the actual tender,” said an industry insider.


 

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