Qatar Petroleum entered into three agreements with the Republic of Korea for LNG shipbuilding, which if fully executed would cost 100 LNG carriers approximately $ 20 billion.
According to the data of Qatar, it has reserved around 60℅ of global shipbuilding capacity and can be used for up to seven years. As per Qarar, it is the largest Liquefied Natural Gas shipbuilding program ever in history.
Under the agreement of Qatar, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding Marine Engineering are the three major Korean shipyards that reserved a large amount of their Liquefied Natural Gas shipbuilding capacity through the year 2027 for Qatar Petroleum.
On agreement signing ceremony, Excellency Minister Al-Kabi said, "The signing of today's agreements with three respected Korean companies reflects our commitment to North Field expansion projects." As I have said before, we are moving North field expansion projects to increase Qatar's LNG production capacity from 77 million to 126 million tonnes per year by 2027 to ensure a reliable supply of additional clean energy for the world when investment is most needed to meet these needs. "
The new LNG ships will be equipped with the latest generation of slow-speed dual-fuel engines, which use LNG as fuel. The vessels will be used to expand the company's local and international LNG projects, as well as carry out the company's plans to replace part of Qatar's existing LNG fleet.
However, the news of the order has come at a time when the oil and gas industry, including Qatar Petroleum, is suffering from slowing world prices and slow demand linked to the global impact of coronavirus.
There are reports worldwide that LNG projects are delayed with increasing the question of the need for increased shipping capacity.
Companies that are operating in the Liquefied Natural Gas shipping market are reporting that demand of LNG is going downwards and have to rethink their plans.
Indeed, Saudi energy company Aramco has reportedly completely terminated its planned entry into the LNG shipping market. Analysts expected Armco to invest more than $ 2 billion to develop its LNG shipping capabilities.
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Due to the impact of coronavirus all over the world, the plan of continuing exploration projects, In May Qatar Petroleum announced to reduce his capital and other operating expenses by 30 percent.
In addition, Qatar's Energy Minister has been quoted as saying that he expects the level he was experiencing before the global spread of COVID-19 to take two years to return.
Qatar is placing a long-term bet on the petroleum market, stating that as the world's largest LNG producer, they believe in-market prospects. In 2017, Qatar announced its plans for the expansion of its gas fields and it continues to pursue its North Field project north-east of the Qatar Peninsula.
While there are reports of project delays due to the current global situation, Qatar has reiterated its commitment to increase its production capacity.
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