DSME to build LNG carrier quartet for Qatar
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has won a KRW 1.07 trillion ($851.7 million) order for the construction of four LNG carriers for the Qatar LNG project.
On 7 June, DSME said it will build the 174,000 cbm LNG carrier quartet for a Korean consortium comprising H-Line Shipping, Pan Ocean, and SK Shipping.
The ships will be built at the Okpo Shipyard and delivered by the first quarter of 2025 for use in QatarEnergy’s North Field Expansion Project.
The North Field lies off the northeast shore of the Qatar peninsula and is one of the largest single non-associated natural gas fields in the world.
As informed, each newbuild will be equipped with a low-pressure dual-fuel propulsion engine (ME-GA) and re-liquefaction facility, which is an eco-friendly ship that can significantly reduce air pollutant emissions.
In addition, the latest technologies such as DS4, DSME’s smart ship solution, will be applied for efficient ship operation.
Qatar, the world’s largest LNG producer, has been carrying out a project to increase its annual LNG production from 77 million tons to 126 million tons.
As part of this, in 2020, QatarEnergy signed an agreement with DSME, Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) to reserve LNG carrier construction capacity.
The latest contract represents the first batch of vessels to be built according to the advance reservation agreement and additional orders are expected in the future.
Between 2004 and 2007, DSME delivered 26 LNG carriers out of 53 ships ordered by Qatar.
The shipbuilder has so far this year secured orders worth about $5.47 billion for a total of 24 ships, including 16 LNG carriers, six containerships and one offshore plant, representing about 61.5% of the annual order target of $8.9 billion.
In related news, Qatar and Germany have recently signed a joint declaration of intent to promote cooperation between the two countries in the field of energy. The agreement builds on the ongoing successful dialogue between the two countries and is expected to develop into a mutually beneficial energy partnership between Qatar and Germany through building LNG trade relations as well as pursuing the climate action ambitions of both countries.
It has not been disclosed whether the North Field Expansion Project and the LNG carriers in question will be part of this bilateral cooperation.
It is expected that such partnership will further strengthen Germany’s energy supply diversification through LNG imports from Qatar, while also facilitating bilateral cooperation in hydrogen and renewable sources.
Germany is rapidly working to develop LNG infrastructure and enable LNG imports in the near term in an effort to reduce dependence on Russian gas.