'Qatar LNG Ship 23 Trillion Triumph'... A Collaboration of Diplomacy and Technology

South Korean shipbuilders have secured a large-scale liquefied natural gas (LNG) carrier project in Qatar. Qatar Petroleum (QP), the state-owned oil company of Qatar, announced on the 1st that it had signed an agreement related to LNG carriers with Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding & Marine Engineering. The signing ceremony was held via video conference. From the Korean side, Lee Sung-geun, President of Daewoo Shipbuilding & Marine Engineering; Nam Jun-woo, President of Samsung Heavy Industries; Sung Yun-mo, Minister of Trade, Industry and Energy; and Ga Sam-hyun, President of Hyundai Heavy Industries (from left) attended the ceremony. From the Qatari side, Saad Al-Kaabi, Minister of Energy of Qatar and CEO of QP (on the video screen), participated in the agreement ceremony.

Qatar Emir Keeps Promise Made to President Moon

Hyundai Heavy, Daewoo Shipbuilding, Samsung Heavy Win Orders After Fierce Final Competition with China

Acceleration After President Moon’s Meeting with the Emir

High Expectations as a 'Trigger' to Overcome COVID-19 Slump

[Asia Economy Reporter Park So-yeon] The 100 liquefied natural gas (LNG) carriers ordered by Qatar, won by Korea’s top three shipbuilders?Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries?after intense competition with China until the final stages, are the result of Korea’s advanced shipbuilding technology combined with strong government diplomatic support.

The Korean shipbuilding industry has been working tirelessly for a year and a half since the summit between President Moon Jae-in and Qatar Emir Tamim bin Hamad Al Thani in January last year, prioritizing the 'Qatar orders.' Although Korea’s LNG carrier construction technology leads China’s shipbuilders by about seven years, China’s aggressive pursuit backed by government ship financing support was rapidly advancing.

During this period, the Korean government also became a strong ally. Qatar is the country supplying the most LNG to Korea and ranks as the sixth largest partner in crude oil. Especially after the January summit last year, the cooperation between the two countries became stronger than ever. President Moon and Emir Tamim bin Hamad Al Thani held a confidential meeting discussing ways to expand Korean companies’ participation in various projects in Qatar, including shipbuilding, energy, construction, transportation, and infrastructure.

Whenever requested by Qatar’s energy sector, the Korean government and shipbuilders opened their shipyards wide. Before the spread of COVID-19, officials from Qatar’s government and energy industry visited the shipyards multiple times. Representatives from Qatar Petroleum (QP), the state-owned oil company, visited all three Korean shipbuilders regarding orders for LNG carriers necessary for exports. Al-Kaabi, Qatar’s Minister of State for Energy Affairs, also met with key Korean government officials such as former Prime Minister Lee Nak-yeon, Minister of Trade, Industry and Energy Sung Yun-mo, and Minister of Oceans and Fisheries Moon Sung-hyuk at the end of last year, followed by successive meetings with the presidents of the three shipbuilders.

As the COVID-19 pandemic made mutual visits difficult this year, Daewoo Shipbuilding & Marine Engineering’s Abu Dhabi office staff in the United Arab Emirates played a significant supporting role locally. In Korea, negotiations continued via video conferences and emails. There were challenges. Although a Korean monopoly was expected, a Chinese company won the first batch of orders (up to 16 vessels) last month. However, the domestic shipbuilding industry remained confident, grounded in their technological superiority and construction scale. Behind the scenes, government-level efforts such as energy diplomacy were steadily maintained.

The result was a record-breaking 'jackpot.' The orders far exceeded the initially discussed 60 vessels during Emir Tamim bin Hamad Al Thani’s visit. The three Korean shipbuilders signed contracts with Qatar Petroleum for over 100 LNG carriers. On the 1st (local time), Qatar Petroleum (QP) announced that it had signed a slot reservation contract with Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries for over 100 LNG carrier slots (space for building hulls and ships) through 2027.

The average price per LNG carrier is about 230 billion KRW, making this contract worth over 70 billion Qatari Riyals (approximately 23.6 trillion KRW). Slot reservation is the process of securing construction space before formal orders. On the day, a virtual signing ceremony was held with Qatar’s Minister of Energy and QP CEO Saad bin Sherida Al-Kaabi, Minister of Trade, Industry and Energy Sung Yun-mo, and representatives of the three Korean shipbuilders.

A source from the domestic shipbuilding industry said, "In a situation where maritime cargo volume has significantly decreased and shipbuilding orders have been delayed due to the COVID-19 pandemic, this will act as a 'trigger' to revitalize the entire domestic shipbuilding ecosystem," adding, "It is expected to have a positive impact on remaining LNG carrier orders from Russia and Mozambique, enabling Korean companies to achieve good results."

This content was produced with the assistance of AI translation services.