South Korean shipbuilders are expected to construct 20 LNG carriers as part of Qatar’s ambitious liquefied natural gas (LNG) expansion project. Qatar Energy, the state-owned company spearheading the project, is currently in negotiations with HD Korea Shipbuilding & Offshore Engineering (KSOE), Hanwha Ocean, and Samsung Heavy Industries for the construction of LNG carriers valued at $5 billion.
According to a report by Business Korea on September 24, Qatar plans to order carriers with capacities of 174,000 cubic meters (CBM) and 271,000 CBM. The larger 271,000 CBM carriers are expected to match the specifications of Qatar-China-Max (QC-MAX) vessels, which are the largest LNG carriers capable of docking at ports in both Qatar and China. Recently, China’s Hudong Zhonghua Shipbuilding secured a deal to build six QC-MAX LNG carriers.
Over the past two years, Qatar Energy has signed contracts totaling $30 billion to construct or lease 122 new LNG carriers, making it part of one of the largest fleet expansion projects in history. In 2022, Qatar Energy ordered 60 vessels in the first phase, followed by an additional 62 vessels in 2024. The new vessels will support Qatar’s North Field and Golden Pass LNG projects.
Qatar’s North Field Expansion project is poised to enhance its position as the world’s leading LNG exporter, with plans to increase its liquefaction capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027.
Between late 2022 and early 2023, the three leading South Korean shipbuilders received orders for 44 LNG carriers from Qatar Energy, all with a capacity of 176,000 CBM. This included 17 vessels for HD KSOE, 15 for Samsung Heavy Industries, and 12 for Hanwha Ocean. In addition, Hudong Zhonghua Shipbuilding has secured orders for more than 10 vessels, recently adding six to its existing contracts.
Industry experts predict that orders for 40 to 60 LNG carriers will be placed annually over the next decade, as global demand for LNG transport capacity continues to rise.