QatarEnergy awards $3.9bn contract to Korean shipyard

State-owned QatarEnergy has signed a QAR14.2 billion ($3.90 billion) contract with South Korean shipyard HD Hyundai Heavy Industries for the construction of 17 liquefied natural gas carriers.

The deal marks the start of the second phase of the state-run energy company’s LNG ship acquisition programme, which will support expanding its LNG production capacity from the North Field LNG expansion and Golden Pass LNG export projects, as well as its long-term fleet replacement requirements. 

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The total number of confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates reached 77. The first phase saw 60 ships manufactured by Korean and Chinese shipyards. 

QatarEnergy CEO Saad Al Kaabi called the deal with the shipyard “another milestone in our long-term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general”.

“These 17 LNG carriers will be built to the highest technical and environmental standards and specifications. Further, the vessels are designed to achieve optimal fuel efficiency and significantly reduce carbon emissions.”

QatarEnergy in July said net profit jumped 58 percent to QAR154.6 billion ($42.47 billion) in 2022, compared with QAR97.9 billion in 2021.

The energy company is working on boosting its LNG production capacity by 64 percent to 126 million tonnes annually by 2027, compared with the existing 77 million tonnes.

The first gas shipments from the North Field Expansion project are expected to be delivered in 2026.