QatarEnergy orders 18 of the world’s largest LNG vessels from China for $6 billion

QatarEnergy has signed a deal for almost $6 billion with China State Shipbuilding Corporation (CSSC) to build 18 ultra-modern QC-Max size LNG vessels. The significant addition to the state company’s ongoing LNG fleet expansion programme will bring vessels with a capacity of 271,000 cubic meters each.

They are to 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.

Industry-first ships

The agreement was signed in Beijing by His Excellency Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of QatarEnergy, during a special ceremony that included senior Chinese government officials.

“With a total value of almost six billion dollars for these ultra-modern, largest ever LNG vessels by size, the agreement is the industry’s largest single shipbuilding contract ever,” said Minister Al-Kaabi.

Epic fleet growth

A further 12 conventionally-sized LNG vessels are currently being constructed at Hudong-Zhonghua Shipyard, with deliveries expected to begin by the third quarter of 2024.

Minister Al-Kaabi continued: “I would like to affirm QatarEnergy’s determination to live up to our commitment to provide a safe and reliable energy source in the form of LNG, while always giving priority to environmental sustainability.”

Eight of the 18 QC-Max size LNG vessels will be delivered in 2028 and 2029, while the other 10 will follow in 2030 and 2031.

Huge order confirms ties

Last month, QatarEnergy announced signing Time Charter Party agreements for a total of 104 conventional-size vessels (174,000 cubic meters), constituting the largest shipbuilding and leasing programme in the industry’s history.

This new milestone further highlights increasing 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. 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 fertilisers, polymers and chemicals (1.6 million tons) to the Chinese market.

Project handshakes

Last year also saw the participation of two of China’s national energy companies as partners in Qatar’s North Field Expansion projects, with Sinopec acquiring a 1.25% interest in the North Field East project and a 1.875% interest in North Field South, while also signing 27-year LNG sales and purchase agreements for a total of seven million tons per annum.

CNPC 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.