Qatae news- Petropipe

Qatar Signs $20B Vessel Contract to Cement LNG Leadership Role

Qatar has signed a deal worth around $20 billion with South Korean shipbuilders to help cement its position as the world’s largest producer of liquefied natural gas.

The Gulf emirate entered into agreements with Daewoo Shipbuilding & Marine Engineering Co., Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., according to a statement from state producer Qatar Petroleum. The three Korea-based firms will reserve a “major portion” of their LNG ship-construction capacity for QP through 2027.

The deal, valued at around 70 billion Qatari rials ($19.1 billion), could see them build more than 100 LNG vessels for Qatar, QP said.

“We have everything in place to commence the largest LNG-shipbuilding program in history,” said Saad Al-Kaabi, QP’s chief executive officer and Qatar’s energy minister. “We have secured approximately 60% of the global LNG shipbuilding capacity through 2027.”

QP signed a separate agreement to secure shipbuilding capacity with Hudong-Zhonghua Shipbuilding Group Co., a wholly owned subsidiary of China State Shipbuilding Corp., in April.

It needs a bigger fleet of LNG carriers because of new projects in Qatar and the U.S.

Qatar is “moving full steam ahead” with the expansion of the North Field, its share of the world’s biggest gas deposit, al-Kaabi said. That will raise the country’s annual output from 77 million tons to 126 million tons by 2027, he said.

QP will expand its output despite plans to cut spending by about 30%, Kaabi said last month.



Visiongain: Micro LNG Market Set to Grow to $222.7 Million by 2030

Visiongain said in its Micro Liquefied Natural Gas (LNG) Market Forecast 2020-2030 that investments in small scale LNG liquefaction facilities were gaining momentum, which surged the demand for less than 0.1 mtpa micro-scale LNG liquefaction facilities mainly for peak shaving needs.

Low logistics and transportation costs coupled with on-site liquefaction of LNG, i.e. near to the demand centers, surged the investments in the micro LNG business.

According to the company’s report, there are more than 30 operational micro LNG liquefaction facilities with China dominating the micro LNG market in terms of installed liquefaction facilities.

Visiongain assesses that supply-side, demand-side, and installed capacity of the global micro LNG liquefaction will reach $222.7 million in value and five mtpa in terms of installed capacity by 2030.

The company added that the planned and upcoming projects were the driver for the steady growth rate till 2030.

Also, growing investments in the development of economic small-scale LNG liquefaction facilities is expected to benefit the demand for micro LNG in the near future.