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China State Shipbuilding lands its largest deal with Qatar oil producer

By Zhao Lei in Beijing and Wang Ying in Shanghai | chinadaily.com.cn | Updated: 2020-04-22 20:25
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China State Shipbuilding Corp, the world's largest shipbuilder, signed a major contract worth 20 billion yuan ($2.8 billion) with Qatar's national oil company on Wednesday, marking the largest export deal in China's shipbuilding sector.

The Chinese State-owned conglomerate, popularly known as CSSC, announced that one of its subsidiaries in Shanghai -- Hudong-Zhonghua Shipbuilding – will construct liquefied natural gas carriers, according to the contract with Qatar Petroleum, the world's largest LNG supplier.

A signing ceremony was held on Wednesday afternoon by teleconference, attended by CSSC executives in Beijing, Hudong-Zhonghua Shipbuilding managers in Shanghai and leaders of Qatar Petroleum in Doha, capital of the Middle Eastern nation.

Under the contract, Hudong-Zhonghua Shipbuilding will construct its G4+Changhui series LNG carriers for the Qatari company.

The G4+Changhui developed by Hudong-Zhonghua Shipbuilding is capable of carrying 174,000 cubic meters of LNG and features high speed, low fuel consumption and light weight. Its capability, environmental performance and reliability are world-class, according to CSSC.

The company did not disclose the number of ships it will build for Qatar Petroleum.

The Qatari energy giant in April 2019 issued an invitation to tender for the reservation of ship construction capacity required for more than 100 LNG carriers.

Lei Fanpei, chairman of CSSC, said at the signing ceremony in Beijing that the global energy market has been undergoing strong turbulence caused by the impact from the novel coronavirus outbreak. Under such circumstance, the decision made by Qatar Petroleum to promote its LNG projects and start the shipbuilding program will greatly help stabilize the international energy sector.

He said that CSSC will use all-out efforts to fulfill the contract and make the project a shining example of cooperation in the global energy industry.

Lei also urged both sides to further strengthen their collaboration and make bigger contributions to the global energy market and the Belt and Road Initiative, as well as the bilateral friendship.

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