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Hanwha Ocean grabs $1.8bn deal for 8 LNG carriers in Qatar

Collected: 2024.03.26

Distributed: 2024.03.27

Source: Go Direct

[Courtesy of Hanhwa Ocean]

South Korea’s Hanwha Ocean Co. has secured a contract to build eight liquefied natural gas (LNG) carriers for QatarEnergy’s second LNG development project.

According to the company on Monday, it signed a 2.43 trillion won ($1.8 billion) contract to build eight LNG carriers with a shipowner in Oceania.

The vessels will be built at Hanwha Ocean’s Geoje Shipyard and are scheduled for delivery by the end of January 2028.

The latest contract marks the first formal agreement for Hanwha Ocean since it signed a memorandum of agreement (MoA) for 12 LNG carriers with a shipowner in the Middle East on February 29.

The choice of a shipowner in Oceania as the contracting party, rather than a shipowner in the Middle East as with the previous agreement, is believed to be due to Qatar Energy’s designation of a shipowner from the Oceania region, possibly for convenience of registration of vessels in a third country.

Hanwha Ocean is currently reviewing the details of a separate contract with another shipowner for the remaining four vessels.

The Qatari government is driving forward with the Qatar Project, aiming to increase its annual LNG production from the existing 77 million tons to 126 million tons by 2027.

In line with this expansion, Qatar seeks to secure LNG carriers for transportation, leading to agreements with three Korean shipbuilders in 2020 for the reservation of over 100 dockyard slots for ship construction.

By Choi Hyun-jae and Minu Kim

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