South Korean shipowners are reported to be considering teaming-up to win the operating contracts for Qatar’s massive LNG ordering binge.
Korea Line Corp, Pan Ocean, SK Shipping, Hyundai LNG Shipping and H-Line Shipping Co are set to form an alliance, reported Yonhap.
The South Korean news agency said the five owners plan to hold a presentation together in Doha on Monday to explain their plans for Qatar’s LNG project.
Qatar Petroleum, the world’s largest LNG producer, is looking to acquire up to 80 LNG newbuildings worth more than $15bn.
In August TradeWinds reported that Qatargas has made its first approach to shipowners with requests for what was termed as a “solicitation of interest” (SOI) on the ships.
While South Korea’s major shipbuilders are expected to secure the bulk of the orders to build the ships due to their dominance in the LNG sector, local shipowners are hoping they can secure contracts to operate the vessels.
“It’s worth a try. What’s meaningful is that local shippers are trying to join forces to overcome difficulties together,” Yonhap said quoting an unnamed shipping executive.
Under Qatar Petroleum's planned timetable, owners would send in technical and commercial proposals in April next year, with the business due to be awarded next June and time charters on the ships inked by the end of 2020.
On Sunday, South Korea and Qatar held high-level talks in Doha to discuss cooperation in key sectors such as energy, according to South Korea’s commerce ministry.
The two agreed to expand their cooperation in fields such as smart grids and solar energy and strengthen economic ties, it said.
