LARGEST DEAL EVER FOR CHINESE SHIPBUILDERS! CSSC AND QATAR PETROLEUM SIGN AN AGREEMENT FOR THE CONSTRUCTION OF LNG CARRIERS

On April 22, China State Shipbuilding Corporation Limited (CSSC) and Qatar Petroleum signed online an agreement for the construction of LNG carriers, which is the first batch of order under Qatar's LNG carrier fleet program, amounting over 20 billion Chinese Yuan (about 2.82 billion U.S. Dollars), a record export value for China's shipbuilding industry.

Mr. Lei Fanpei, Chairman of CSSC, and Mr. Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President of Qatar Petroleum, attended the online ceremony and signed the contract on behalf of the two parties online.

The two companies will work together extensively in fields such as energy transportation, equipment building and global services. According to the agreement, Qatar Petroleum will order large LNG carriers from Hudong-Zhonghua Shipbuilding (Group) Co., Ltd (Hudong-Zhonghua), a subsidiary shipyard of CSSC, and Hudong-Zhonghua will also reserve berths for follow-up orders. The deal marks a global recognition of Chinese manufacturers and the brand of CSSC, and will support further upgrading of China's high-end maritime equipment manufacturing.

During the ceremony, Mr. Lei Fanpei remarked that, under the unusual circumstances of the COVID-19 pandemic, the implement of Qatar Petroleum's LNG carrier construction plan will inject vitality into global energy industry. CSSC will deliver quality ships in time and expects the contract signing to be an opportunity to expand and enhance the cooperation between CSSC and Qatar Petroleum in all aspects and levels, making contribution to stabilizing global energy industry chain, developing the 'One Belt One Road' Initiative and promoting the friendship between China and Qatar.

Mr. Saad Sherida Al-Kaabi added that, the signing of the agreement reflects the increasing economic and trading exchanges between Qatar and China. As an important milestone for the cooperation between CSSC and Qatar Petroleum, the agreement will consolidate the strategic partnership between the two parties. Qatar Petroleum looks forward to strengthening the cooperation with CSSC, and promoting the global LNG industry together.

The 174,000m3 LNG carrier for Qatar Petroleum is the latest generation of LNG carrier, indigenously developed by Hudong-Zhonghua. The carrier has top performance in terms of efficiency, reliability and environmental protection in the world.

Qatar Petroleum floated the tender for construction of 100 LNG carriers in April, 2019. CSSC attached great importance to this, and directed its subsidiary companies-China Shipbuilding Trading Co., Ltd. (CSTC) and Hudong-Zhonghua, to compete for the bidding. After fierce competition and four rounds of negotiations in one year, CSSC was awarded the contract.