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South Korea eyes LNG carrier deal with Qatar

Tuesday, 05 Feb 2019

South Korea’s president said that Qatar’s energy minister revealed plans during a bilateral summit for Qatar to order 60 new liquefied natural gas (LNG) carriers which could be built in South Korea.

Shares in South Korean shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries rose sharply after the announcement. Qatari energy minister Mr Saad Sherida Al-Kaabi, who also serves as deputy chairman of Qatar Petroleum, said he expects
cooperation with experienced Korean shipbuilders on constructing the LNG carriers. Financial details of the plan were not disclosed. Speaking during a luncheon after the summit, the chief executive of South Korea’s Daewoo Shipbuilding said most of the LNG carriers owned by Qatar were built by Korea’s top three shipbuilders. He said he hoped South Korean yards would be considered the first choice to build the new LNG carriers for Qatar. Qatar needs a large number of new LNG carriers to meet its LNG export capacity needs from 2023. Qatar Petroleum is expected to order 30 to 40 super-sized LNG carriers with 210,000cu.m to 266,000cu.m of type Q-Max and Q-Flex. Korean shipbuilders have strong hopes about winning the contracts as they secured big orders for LNG carriers from Qatar in the last ten years. They won all of the LNG carriers ordered by Qatar from 2004 to 2007, with 19 taken by Daewoo Shipbuilding and Marine Engineering, 18 by Samsung Heavy Industries and eight by Hyundai Heavy Industries.

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