Qatar Petroleum has formally launched its effort to net more than 100 LNG carriers it needs for its expansion plans by sending out a tender to shipowners for vessels to take on long-term charter.
Brokers said Qatar Petroleum, the Middle East LNG production giant, issued an invitation to tender (ITT) to pre-qualified owners on 16 March.
Those invited have until mid-April to submit their technical bids. Commercial offers are due in the middle of July.
But as yet there are no details of the number of vessels Qatar Petroleum is seeking to move ahead on.
In a departure from previous LNG ship tenders which have been kept strictly confidential, Qatar Petroleum made a statement on its tender invitation.
The company said the tender was issued to “a large group of shipowners”.
Qatar Petroleum said that once the offers have been received it will review bidders technical and commercial capabilities with the aim of assigning shipowners to yard slots.
The company added that compatriot producer and LNG carrier charterer Qatargas, which operates Qatar's fleet of Q-Max and Q-Flex LNG carriers, will be handling the shipowner selection.
'Major milestone'
“The release of this ITT package is a major milestone in our efforts towards securing the most qualified shipowners and operators for our future LNG carrier fleet,” said Qatar’s minister of state for energy affairs Saad al-Kaabi, who is also Qatar Petroleum president and chief executive.
Qatar needs the vessels to serve its planned North Field Expansion (NFE) project which will raise its nameplate production from 77 million tonnes per annum to 126 mtpa by 2027. In addition, it is also seeking ships for its Golden Pass LNG export project in the US and fleet renewal efforts as contracts on existing vessels end.
The tender is a significant move.
Last year Qatar Petroleum stunned the market when it went large on its shipping plans, reserving 151 berths for its upcoming LNG carrier requirements in deeds of agreement (DOAs) at yards in China and South Korea in what Al-Kaabi said will be “the largest LNG shipbuilding programme in history”.
The newbuildings were priced at about $180m each on slots for deliveries from 2023 through into 2026.
South Korean shipyards are currently pricing LNG carrier berths at between $185m and $187m, and in the interim since Qatar Petroleum's DOAs with yards, there has been a huge and ongoing wave of containership orders inked which have soaked up berths of 2023 deliveries.
No show in 2020
Qatar Petroleum gave early indications that it planned to move ahead on the vessels during 2020, but the company went almost silent, leaving shipowners that had worked with the Qatar in the past on LNG carriers and the four shipyards with reserved berths bemused and slightly frustrated.
Those following the business said Qatar Petroleum was focusing on pre-qualifying the shipowners it had not previously worked with.
In February, Qatar Petroleum took a final investment decision on the first phase of its NFE project which will raise production to 110 mtpa. Qatar plans to boost this by two additional trains in a second phase and has indicated it is looking at further expansion.
