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Tuesday, October 26, 2021

Qatar places multimillion dollar order with China for LNG fleets


State-owned natural gas supplying giant Qatar Petroleum has ordered four new LNG tankers from China.

Qatar Petroleum (QP) has ordered four new liquified natural gas (LNG) tankers from Hudong-Zhonghua Shipbuilding Group Co. Ltd. (Hudong), a subsidiary of China State Shipbuilding Corporation Limited (CSSC).

The carriers are the first batch of orders in QP’s LNG shipbuilding program, which will meet the needs of future LNG tanker requirements for QP’s North Field expansion project, the world’s largest natural gas project.

This is QP’s or any of its affiliates first order with a Chinese shipyard for LNG ships and the first with Hudong.

“We continue to push forward with our LNG expansion projects, and today’s announcement is yet another step in our journey. I am especially pleased with the signing of this order as it marks our first ever new LNG carrier to be built in the People’s Republic of China,” said the Minister of State for Energy Affairs, President and CEO of QP Saad Sherida Al-Kaabi.

Qatar-China ink major 15-year LNG deal

“We are proud to contribute to the success story of the LNG ship construction industry in China. We are also confident in Hudong’s capabilities to execute this order, worth in excess of 2.8 billion Qatari Riyals, to the highest safety and technical standards and to deliver top quality LNG carriers that will facilitate continued safe and reliable delivery of LNG to the world,” Al-Kaabi added.

QP has also recently signed a new deal to supply LNG to China for 15 years.

The agreement was signed with CNNOC Gas and Power Trading & Marketing Limited, a China National Offshore Oil Corporation subsidiary.

As per the new deal, Qatar will deliver 3.5 million tonnes of LNG per annum (MTPA) starting from January 2022. CNOOC is China’s top offshore oil and gas producer.

In March, a 10-year deal was signed between QP with China Petroleum & Chemical Corporation (Sinopec). The LNG Sale and Purchase Agreement (SPA) terms were that 2 million tonnes per year of LNG be delivered to Sinopec’s terminals in China starting from January 2022.

The March deal marked QP’s first long-term deal with the major Chinese LNG importer. Qatar has said that China is considered a significant customer and strategic partner in the field of energy.

In April, China National Offshore Oil Corporation, China’s third-biggest oil company, hinted interest at a partnership in Qatar’s $29 billion North Field LNG expansion project.

The North Field expansion project is the world’s largest LNG project. The project is set to raise Qatar’s LNG production capacity from 77 million metric tonnes per year to 110 million metric tonnes per year by 2025.

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