QatarEnergy places $3.9 billion order for 17 LNG carriers at Korean shipyard

Qatar’s state-owned oil and gas company QatarEnergy has signed an agreement with South Korean shipyard HD Hyundai Heavy Industries (HHI) for the construction of 17 LNG carriers.

The shipbuilding contract, valued at QR14.2 billion ($3.9 billion), was revealed on September 27, 2023, and is said to mark the second phase of QatarEnergy’s LNG ship acquisition program, which will support its North Field LNG expansion and Golden Pass LNG export projects along with its long-term fleet replacement requirements. 

In the first phase of the program, a total of 60 ships were ordered at Korean and Chinese shipyards. The new order brings the total number of confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates to 77, with more to follow, the company said.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of QatarEnergy, commented on the contract: “This is another milestone in our long-term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general, which is built on the strong and strategic partnership between the State of Qatar and the Republic of Korea.

“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.”

QatarEnergy’s LNG shipbuilding program has been described as the largest of its kind in the history of the LNG industry.

In early June, the company celebrated the steel cutting of the first of its new generation of chartered LNG carriers to be built at Samsung Heavy Industries. Chinese shipyard Hudong-Zhonghua started building the second vessel for the Qatari company at the beginning of this year.

In 2022, QatarEnergy also signed multiple time charter parties with various shipowners, including affiliates of JP Morgan Asset Management, a fund investing in a wide array of transportation assets.