Qatar signs record-breaking $6bn deal with Chinese shipbuilder for LNG carriers

QatarEnergy has signed a record-breaking agreement with Hudong-Zhonghua Shipbuilding, a subsidiary of China State Shipbuilding Corporation, to build 18 liquefied natural gas (LNG) carriers as it prepares to boost its output of the super-chilled fuel.

The $6 billion contract is part of a potentially larger deal that could involve over 60 LNG carriers, making it one of the most significant in the industry’s history. This strategic move is aimed at supporting the Gulf state’s expanding LNG production capacity, which is set to increase significantly with its North Field expansion projects.

H.E. Minister Saad Sherida Al-Kaabi meets the Chairmen of three major Chinese energy companies#QatarEnergy #YourEnergyTransitionPartner #Qatar pic.twitter.com/G7XhKcvtxM

— QatarEnergy (@qatarenergy) April 30, 2024

In a statement on Monday, QatarEnergy said that the shipbuilder will make the ultra-modern QC-Max size LNG vessels, each with a capacity of 271,000 cubic metres, at its Hudong-Zhonghua shipyard.

The agreement was signed in Beijing by the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, Saad Sherida Al-Kaabi, and the Chairman of Hudong‐Zhonghua Shipbuilding, Chen Jianliang, as well as Li Hongtao, the Chairman of China Shipbuilding Trading.

The signing ceremony was attended by a number of senior Chinese government officials and Mohamed Abdullah Al-Dehaimi, Qatar’s Ambassador to China.

Speaking at the ceremony, Al-Kaabi said: “With a total value of almost $6 billion for these ultra-modern, largest ever LNG vessels by size, the agreement we signed today is the industry’s largest single shipbuilding contract ever.”

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