QatarEnergy to charter 19 LNG more vessels expanding fleet further

QatarEnergy had previously contracted for 77 ships to be built at Korean and Chinese shipyards

By Reuters

Published: Sun 31 Mar 2024, 3:04 PM

QatarEnergy CEO Saad Al Kaabi announced on Sunday that the company has finalised a number of charter contracts with several Asian ship owners to bolster its shipping fleet by 19 LNG vessels ahead of a massive expansion in LNG output.

In a ceremony at its Doha headquarters state-owned QatarEnergy signed contracts to charter six vessels from CMES LNG Carrier Investment, six vessels from Shandong Marine Energy, three vessels from MISC Berhad and four vessels from Kawasaki Kisen Kaisha and Hyundai Glovis.

QatarEnergy had previously contracted for 77 ships to be built at Korean and Chinese shipyards in the first phases of its LNG ship acquisition programme.

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QatarEnergy's North Field expansion will boost its position as the world's top LNG exporter. It includes eight LNG trains that will ramp up Qatar's liquefaction capacity from 77 million tons per annum (mtpa) to 142 mtpa by 2030, an 85 per cent increase in production.

Growth in global gas demand is set to pick up this year due to colder winter temperatures and easing prices, with emerging economies leading the increase in consumption, but geopolitical risks and supply-side concerns could trigger renewed price volatility, according to the International Energy Agency's (IEA) gas market report in January this year.

According to the IEA, global gas demand is forecast to grow by 2.5 per cent, or 100 billion cubic metres (bcm) in 2024. Expected colder winter weather in 2024, compared with the unusually mild temperatures experienced in 2023, is likely to bring increasing demand for space heating in residential and commercial sectors.