QatarEnergy has signed an agreement with Korea’s HD Hyundai Heavy Industries (HHI) for the construction of 17 ultra-modern liquefied natural gas (LNG) carriers.
The deal is valued at $3.79 billion (SAR 14.2 billion), QatarEnergy said in a press release on Wednesday. It marks the start of the second phase of the company’s LNG vessel acquisition program, which will support its expanding LNG production capacity from the North Field LNG expansion and export projects of LNG Golden Pass, as well as long-term fleet replacement requirements, according to the release.
QatarEnergy and its subsidiaries now expect 77 new confirmed LNG vessels to be delivered, which includes the 60 vessels contracted by the company in the first phase of its procurement program. The 60 ships will be built at Korean and Chinese shipyards, the company said, adding that it expects more to come.
“This is another milestone in our long-term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general, which builds on the strong and strategic partnership between the State of Qatar and the Republic of Korea ” said Qatar’s Minister of State for Said the President and CEO of Energy Affairs and QatarEnergy, Saad Sherida Al-Kaabi.
“These 17 LNG carriers will be built by HD Hyundai Heavy Industries to the highest technical and environmental standards and specifications. In addition, the vessels are designed to achieve optimal fuel efficiency and [a] significant reduction in carbon emissions. This emphasizes our continued commitment as a leader in sustainability, innovation and growth within the LNG industry,” Al-Kaabi added.
“We value our partnership with Qatar and are very proud to participate in the world’s largest LNG newbuilding project,” said Ka Sam-Hyun, vice president and CEO of HD Korea Shipbuilding & Offshore Engineering. “We firmly believe that this opportunity will further consolidate the long-standing cooperative relationship between our two countries and companies. We are fully committed to contributing to this project with the most advanced technology and expertise to ensure safer, more efficient and more reliable LNG transportation from Qatar to the world.”
QatarEnergy said its LNG shipbuilding program is “the largest of its kind in the history of the LNG industry and will play a critical role in meeting its future shipping requirements as it expands capacity to Qatar’s LNG production”.
The Golden Pass LNG terminal is located on the Gulf Coast near Sabine Pass, Texas, and is owned by QatarEnergy, which has a 70 percent stake, and ExxonMobil, which has a 30 percent stake. The terminal is “among the largest in the world” and will soon include liquefaction and export capabilities, according to the company’s website.
LNG is crucial in the energy transition: Al-Kaabi
In a separate press release, Al-Kaabi highlighted the importance of natural gas in the energy transition. He made his remarks at the ministerial plenary meeting as part of Tokyo’s Green Transformation Week.
Al-Kaabi said that “a balanced energy transition requires the incorporation of natural gas into our present and future energy.” He also reiterated that “natural gas will be indispensable, especially given its reliability as a baseload source for many nations and for many years beyond 2050.”
“While the pivot to renewables is laudable, they cannot be the only solution, especially given their intermittent nature. That’s where natural gas, as the cleanest, most cost-effective and ready-to-use component of the energy transition, it becomes vital. In the State of Qatar, we recognize the seriousness of climate change and constantly take action instead of making promises,” continued Al-Kaabi.
“Our duty is twofold: to advance renewable capacity while maintaining robust baseload capacity. I urge this esteemed assembly to prioritize key factors vital to a sustainable transition: strengthening energy security, bridging the energy poverty gap which affects billions of lives, ensure equitable access to energy, amplify investments and move decisively away from coal,” Al-Kaabi concluded. .
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