These Countries Sign A $19 Billion Deal To Boost Exports

231

Qatar has placed an order for six liquefied natural gas ships from South Korea as part of a multibillion-dollar effort to increase LNG output, as reported by Bloomberg.

Qatar Energy’s big purchase

Qatar Energy, the world’s largest LNG exporter, has announced the purchase of four vessels from Daewoo Shipbuilding & Marine Engineering and two from Samsung Heavy Industries. They are the first orders under a $19 billion agreement announced last year between Qatar and Korean shipbuilders.

Qatar has chosen Daewoo, Hyundai Heavy Industries Co., and Samsung to build more than 100 LNG vessels by 2027. By then, the Persian Gulf state will have spent roughly $30 billion to raise LNG output by 50%.

LNG demand

In October, Qatar placed an order with China for four LNG tankers for more than $760 million in order to expand its fleet. LNG is considered a viable alternative to more polluting fuels like oil and coal, and prices have risen dramatically in Europe and Japan in recent months.

Qatar Energy’s worldwide LNG demand predictions are more optimistic than some analysts’. Demand is expected to expand through 2050, justifying the company’s expenditure. Global gas demand is expected to peak in the mid-2020s, according to the International Energy Agency, as consumers migrate away from fossil fuels.

Did you subscribe to our newsletter?

It’s free! Click here to subscribe!

Source: Bloomberg

 

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.