Qatar ups supersize LNG carrier deal with CSSC by six vessels

QatarEnergy has signed its latest deal with China State Shipbuilding Corp (CSSC) for the construction of six additional QC-Max vessels.

The additional vessels bring the total number of QC-Max vessels on order for Qatar Energy to 24 and the total number of LNG vessels on order under its fleet expansion programme to 128.

The QC-Max vessels, which will be built at China’s Hudong-Zhonghua Shipyard, a wholly owned CSSC subsidiary, are the largest LNG vessels ever built with a capacity of 271,000 m³ each. The new LNG carriers are scheduled to be delivered between 2028 and 2031.

In his comments at the contract signing, Qatar’s Minister of State for Energy Affairs and president and chief executive of QatarEnergy, Saad Sherida Al-Kaabi said, “The signing of today’s agreement is underscored by the strategic importance of QatarEnergy’s historic LNG fleet expansion programme and its commitment to maintaining a leadership position in the global LNG market.”

The six new vessels join QatarEnergy’s earlier orders for 18 QC-Max vessels from Hudong-Zhonghua Shipyard, with a total contract value of about US$8Bn.

At the end of April, QatarEnergy signed long-term time charter agreements with three Chinese shipping companies, China Merchants Group, Shandong Marine Group, and China LNG Shipping (Holdings) Ltd, for nine 271,000-m³ LNG carriers. These nine vessels are part of 18 QC-Max LNG newbuilds on order at Hudong-Zhonghua shipyards in China.

In just the first four months of 2024, shipowners placed orders for 55 LNG carriers with an aggregate capacity of 11M m³  – the same total as was ordered through the whole of 2023. Reflecting the increasing tight availability of shipyard slots as well as inflationary pressures, shipbroker Fearnleys reported at the time that the average price of a 170,000-m³ LNG carrier was hovering above US$260M.