Qatar Prepares To Dominate The LNG Export Market
Qatar is backing up its massive LNG expansion plans with new orders to charter dozens of new ships as the tiny Gulf gas producer aims to solidify its dominance in the global LNG export market.
Last year, the United States overtook Qatar as the world’s largest LNG exporter, but Qatar has a huge expansion program underway to boost its export capacity by 85% from current levels by 2030.
As the U.S. paused permit approvals for new LNG export projects earlier this year, adding uncertainty about the outlook for U.S. supply from the late 2020s onwards, Qatar is forging ahead with capacity expansion plans – and now new vessel charter deals – which could make it a number-one exporter of LNG once again later this decade.
On Sunday, QatarEnergy said it had signed long-term time charter party (TCP) agreements with four international shipowners for the operation of 19 new conventional-size LNG vessels.
Under the deals, the Qatari state firm will operate six vessels by China’s CMES LNG Carrier Investment and Shandong Marine Energy each, and three vessels by Malaysia’s MISC Berhad. All LNG carriers are being constructed at Samsung Heavy Industries in South Korea. The remaining four vessels will be operated by a joint venture of Kawasaki Kisen Kaisha Ltd (K-Line) and Hyundai Glovis Co. Ltd. and are being built at Hanwha Ocean, also in South Korea.
A week earlier, QatarEnergy had signed time-charter party agreements with Qatar Gas Transport Company Limited (Nakilat) for the operation of 25 conventional-size LNG vessels as part of its plan to expand the LNG fleet.
The latest deal brings the total number of vessels under long-term time charter party agreements to 104 ships, which Qatar will use to export its huge gas reserves.
Sunday’s deals mark the conclusion of the conventional-size vessels part of QatarEnergy’s LNG fleet expansion program, “a massive undertaking that is the largest shipbuilding and leasing program ever in the history of the industry,” QatarEnergy President and CEO Saad Sherida Al-Kaabi said.
