QatarEnergy selects South Korean consortium for DSME LNG carrier quartet

South Korea’s Daewoo Shipbuilding and Marine Engineering has revealed orders for four 174,000-cbm LNG carriers related to the massive shipbuilding program by state-run QatarEnergy.

In March 2021, QatarEnergy launched a tender to a large group of owners for the chartering of LNG carriers for its future requirements.

Also, the firm recently signed charter deals for four LNG carriers with Japan’s MOL, completing the first batch of charter contracts awarded under the shipbuilding program. China’s Hudong-Zhonghua will build these vessels.

Now DSME has secured orders for four LNG carriers from a Korean consortium consisting of H-Line Shipping, which leads the consortium, Pan Ocean, and SK Shipping under QatarEnergy’s program, the shipbuilder said on Tuesday.

QatarEnergy revealed last year that DSME would build four LNG carriers and Samsung Heavy would build two LNG carriers. Samsung Heavy did not issue any announcements on Tuesday.

The LNG producing giant signed deals with South Korea’s biggest three shipbuilders, including KSOE’s Hyundai Heavy, to secure more than 100 vessels worth about $19.2 billion.

About $214.5 million per vessel

DSME said the price tag for the four new LNG carriers reaches about 1.07 trillion won ($858 million) or some $214.5 million per vessel.

The shipbuilder said it would deliver the ships by the first quarter of 2025.

According to DSME, the vessels would feature MAN ME-GA engines as well as a reliquefaction system.

Moreover, DSME said it expects to win additional orders as part of the massive shipbuilding program in the future.

It secured orders worth about $5.57 billion this year, including 16 LNG carriers and 6 LNG-powered containerships.

The yard has now achieved about 61.5 percent of its annual target of $8.9 billion.

Hyundai Heavy order

South Korea’s KSOE said on Tuesday that its unit Hyundai Heavy Industries had won a contract to build two 174,000-cbm LNG carriers for an unidentified European owner.

Hyundai Heavy will deliver these vessels by June 2025.

According to KSOE, the deal has a price tag of 537.5 billion won ($430 million) or about $215 per vessel, almost the same as the DSME order.

KSOE did not reveal any additional information but shipbuilding sources said this contract is most likely related to the QatarEnergy program.

The sources said that the European owner could be Norway’s Knutsen.

Huge LNG expansion projects

QatarEnergy is working on a huge expansion at the giant Ras Laffan project in Qatar but it is also building the Golden Pass LNG export facility in the US.

The firm announced a final investment decision on its $28.75 billion North Field East project in February last year.

Under the project, QatarEnergy will build four mega trains with a capacity of 8 million tonnes per year in the Ras Laffan complex.

This first phase of the expansion project will increase Qatar’s LNG production capacity from 77 to 110 mtpa while the second phase will further boost capacity to total 126 mtpa.

QatarEnergy expects first LNG from the expansion projects in 2025.

The company’s unit Qatargas already operates in total fourteen LNG trains at Ras Laffan.

(Article updated to include an order for two LNG carriers at Hyundai Heavy Industries.)

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