World

Korean Firms Win Order for 100 LNG Ships from Qatar

Korea’s top three shipbuilders have won an order from Qatar’s state-run oil company to build more than 100 LNG tankers. Each costs around W230 billion, which means the deal is worth over W23.6 trillion (US$1=W1,228).

Qatar Petroleum said in a press release Monday that it signed a deal with Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries to build more than 100 LNG vessels by 2027.

The contract was signed by video conference by Qatar’s Energy Minister and Qatar Petroleum CEO Saad Sherida al-Kaabi as well as Korea’s Minister of Trade, Industry and Energy Sung Yun-mo and the heads of the three shipbuilders.

Hyundai Heavy Industries chief Ga Sam-hyun (left) and Minister of Trade, Industry and Energy Sung Yun-mo pose for a photo after signing a deal with Qatar Petroleum during a video conference at a hotel in Seoul on Monday. /Yonhap

There was a moment of anxiety earlier when the order was thought to be in the bag but Chinese rivals won the first batch of orders for 16 tankers. But the second batch is much larger and comes at a time when global shipping traffic has declined due to the coronavirus epidemic.

Qatar is the world’s top customer for LNG tankers and the government there plans to boost annual production volume from 77 million tons to 126 million tons by 2027. It plans to increase the number of its tankers from 74 to 190 over the same period. Korea imports 30 percent of its LNG from Qatar.

  • Copyright © Chosunilbo & Chosun.com
Close