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CSSC SIGNS BIGGEST-YET SHIPBULDING DEAL WITH QATAR

Thursday, April 23, 2020 

In a deal said to be the largest yet for China's shipbuilding industry at US$3bn in value, Qatar Petroleum has entered into an agreement to reserve LNG ship construction capacity to be utilised for Qatar Petroleumís future LNG carrier fleet requirements, including those of its current North Field expansion projects.

The agreement was signed by Qatar Petroleum and Hudong-Zhonghua Shipbuilding Group, a wholly owned subsidiary of China State Shipbuilding Corporation Limited (CSSC). Pursuant to the agreement, a significant portion of Hudong's LNG ship construction capacity will be reserved for Qatar Petroleum through the year 2027.

HE Mr Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, said: “Today, we have taken yet another concrete step to reinforce Qatar’s commitment to its global reputation as a safe and reliable LNG producer at all times and under all circumstances. By entering into this agreement to reserve a major portion of Hudong's LNG ship construction capacity through the year 2027, we are confident that we are on the right track to ensuring that our future LNG fleet requirements will be met in due time to support our increasing LNG production capacity. The value of this landmark agreement has the potential to be well in excess of 11 billion Qatari Riyals, depending on our requirements and the extent of China’s LNG shipbuilding capacity expansion. To this end, Qatar Petroleum is pleased and proud to support the expansion of the LNG ship construction capacity in China and looks forward to further growth in the near future.

“I would like to take this opportunity to thank Hudong’s team for all the hard work to bring this contract to fruition during these challenging times. I would also like to thank the leadership of our esteemed partner, CSSC, for their great support to this effort in line with our mutual desire to further strengthen the excellent relations between China and Qatar, especially during the unusual circumstances the world is currently facing. I am also very grateful to the Qatar Petroleum and Qatargas teams, whose dedicated efforts were instrumental in realizing this agreement.”

Mr Lei Fanpei, Chairman of CSSC said: “The 174,000 m3 LNG carrier for Qatar Petroleum is the latest generation of LNG carrier design customised by CSSC for Qatar. The carrier has the world’s leading performance for efficiency, reliability and environmental conservation, demonstrating CSSC Group’s great efforts and commitment to the success of Qatar Petroleum’s projects. The agreement signed today will be an important milestone for the cooperation of CSSC Group and Qatar Petroleum, and will make new contributions to consolidating the economic cooperation and traditional friendship between Qatar and China.”

Qatar Petroleum’s LNG carrier fleet programme is said to be the largest of its kind in the LNG industry and will play a pivotal role in meeting the shipping requirements of Qatar Petroleum’s local and international LNG projects, as well as replacing some of Qatar's existing LNG fleet.

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