Qatar Petroleum entered into three agreements for LNG ship construction with the Republic of Korea which when fully executed would result in the construction of more than 100 LNG carriers valued at nearly $20 billion.
Qatar believes that it has secured approximately 60 percent of the global LNG shipbuilding capacity for the next seven years, creating what it is calling the largest LNG shipbuilding program in history. Under the agreements, the three major Korean shipyards – Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) – will reserve through the year 2027 a major portion of their LNG ship construction capacity for Qatar Petroleum.
“The signing of today’s agreements with the three esteemed Korean companies reflects our commitment to the North Field expansion projects, even during these extraordinary times,” said His Excellency Minister Al-Kaabi speaking at the signing ceremony. “As I have previously stated, we are moving full steam ahead with the North Field expansion projects to raise Qatar’s LNG production capacity from 77 million today to 126 million tons per annum by 2027 to ensure the reliable supply of additional clean energy to the world at a time when investments to meet these requirements are most needed.”
The new LNG vessels will be equipped with the latest generation slow speed dual-fuel engines, utilizing LNG as a fuel the company said. The ships will be used both to meet the company’s plans for expansion of its local and international LNG projects, as well as replacing part of Qatar’s existing LNG fleet.
The news of the order, however, comes at a time when the oil and gas industry, including Qatar Petroleum, has been suffering from the collapse in world prices and slow demand linked to the global impact of the coronavirus.
Worldwide there are reports that LNG projects are being delayed raising questions over the need for increased shipping capacities. Many companies operating in the LNG shipping market are reporting, despite the increased industry interest in the fuel because of its environmental benefits, that demand has been slowing prompting them to reconsider their plans. Indeed, the Saudi energy company Aramco has reportedly entirely shelved its planned entry into the LNG shipping market. Analysts had expected Aramco to invest more than $2 billion to develop its LNG shipping capabilities.
While reiterating its long-term commitment and plans to continue with its exploration projects and new field development, Qatar Petroleum also announced in May that it would be reducing its capital and operating expenses by 30 percent. Further, Qatar’s energy minister has been quoted as saying he expects it will take up to two years for demand to return to the levels they were experiencing before the global spread of COVID-19.
Qatar Petroleum is making a long-term bet on the market saying that as the world’s largest LNG producer they are confident in the market’s prospects. In 2017, Qatar announced its plans for the expansion of its gas fields and it is continuing to pursue its North Field project offshore north-east of the Qatar peninsula. While there are reports of a delay in the project due to the current global situation, Qatar has reiterated its commitment to significantly increase its production capacity.
Go to Source
A massive fire broke out at the Port of Beirut on Thursday, incinerating a warehouse full of tires and oil within the port’s free zone. The same area was heavily damaged in the ammonium nitrate explosion that leveled the central port area and the adjacent waterfront on August 4. According to Lebanon’s civil defense agency, […]
The National Transportation Safety Board (NTSB) has released a Marine Accident Brief about an accident that occurred on April 15, 2019, involving the towing vessel DeJeanne Maria which struck the end of a submerged dredge pipeline while pushing two spud barges to the Gulf of Mexico. The incident occurred on the Mississippi River in Pass […]
DSV Belgium has solid experience in the transport of pharmaceutical products for different customers. With a pharma hub based at Brussels Airport a lot of experience and know-how has been built up over the years. Last weekend, the forwarder handled one hundred million mouth masks, an important milestone for its Belgian organisation that has put […]
Best known as a leading passenger airport serving Germany’s most populated federal state North Rhine-Westphalia, Düsseldorf has become transformed into a vital distribution point, during the COVID 19 pandemic, for medical equipment and other life-saving goods, mostly from China. Gerton Hulsman, managing director of cargo operations, reports that the handling teams are working hard to […]
With close to 100 daily cargo flights operated to a destination network spanning more than 65 cities across six continents, Emirates SkyCargo is delivering essential supplies and commodities to people around the world. The air cargo carrier is currently operating 11 Boeing 777 freighter aircraft, each with a capacity to transport about 100 tonnes of […]
Operators can continue to use pilots and other crew members who have unable to comply with certain training, recent experience, testing, and checking requirements due to the COVID-19 outbreak in support of essential operations. Additionally, this Special Federal Aviation Regulation (SFAR) provides regulatory relief to certain persons and pilot schools unable to meet duration and […]
Astral Aviation has increased its intra-African network with cargo freighters during the pandemic. While there has been a reduction in capacity to, from, and within Africa, which has been caused by a stoppage of passenger flights and limited frequencies on freighter aircraft, Astral Aviation continues to operate cargo freighters from its Nairobi hub to 13 destinations […]
Emirates SkyCargo has expanded its weekly scheduled cargo flight operations to cover 75 destinations across six continents. Through its wider reach, Emirates SkyCargo is able to transport essential commodities and other urgently needed cargo more rapidly across the world, allowing exporters and importers across markets to benefit from direct access to widebody cargo capacity. Some […]
The UK government’s new post-Brexit tariff regime will result in both winners and losers. The new regime is set to replace the European Union’s Common External Tariff from the end of the Brexit Transition Period on December 31, 2020. The UK’s commitment to the ongoing Brexit process and ending the UK’s transition from EU membership […]
Global commercial aviation charter company Albion Aviation Group is reporting that it is seeing a considerable uptake in its professional cargo broker training courses from the current global pandemic crisis and surge in charter demand. “We have completed a number webinar courses for a whole of host of companies, looking to manage their own cargo […]
Callan Marine is serving as the prime contractor to the Texas Department of Transportation for a maintenance dredging project located at the Bolivar Ferry Terminal, in Galveston, Texas. Work began in May and is estimated to be complete in late July 2020. The project consists of the removal of 600,000 cubic yards of material and […]
The U-Freight Group (UFL), with its considerable involvement in eCommerce logistics, says that the latest statistics showing that global e-commerce sales hit $25.6 trillion in 2018 are a further vindication of its decision to enter this sector of the international freight market several years ago. The latest available estimates, up 8% from 2017, were recently […]
NOAA Fisheries announced Friday that it will cancel five out of its six large-scale research surveys in Alaskan waters this year due to COVID-19. The canceled surveys include the Aleutian Islands bottom trawl survey, the eastern Bering Sea bottom trawl survey, the northern Bering Sea bottom trawl survey, the Bering Sea pollock acoustics survey, and […]
Qatar Airways Cargo transported 56 SkyCell containers with vaccines from one of the largest vaccine manufacturers worldwide on its scheduled freighter and belly-hold cargo flights for its customer, CEVA Logistics. The 54-tonne shipment consisting of pneumococcal and varicella vaccines were flown from Brussels to Mumbai via the carrier’s hub in Doha on two separate flights. […]
Network Airline Management and TAAG Angola Airlines are pleased to announce the renewal of their long-term freighter aircraft contract by an additional 12 months, sealing an ongoing partnership for the foreseeable future. Operating a regular weekly scheduled service from Liege, Belgium, to the capital of Angola, Luanda, Network Airline Management provides a Boeing 747-400F aircraft […]
Tigers has launched a new dedicated Personal Protective Equipment (PPE) section on its eShop, powered by its freight portal SmartHub:Connect. The global logistics and transportation company has also released new software updates for SmartHub:Connect, giving customers shortcuts to buy and process documentation for the shipment of PPE. Tigers is also managing the door-to-door transport of […]