Korean Shipyards Draw $20 Billion of Work From Qatar for LNG Carriers

[Tom Kirkman + 8,860]

Qatar's primary source of revenue is oil & gas.  Mostly a one trick pony. 

Oil & gas and LNG provide about 3/4 of total government revenue, and around 85% of export earnings. 

Qatar has the world's third largest proven natural gas reserve and is the second-largest exporter of natural gas.

And so Qatar has little choice except to expand its exports of LNG in order to keep its oil & gas and LNG revenue streams flowing.  Regardless of the prices of LNG.  Because ... mostly a one trick pony.

What is Qatar's plan when it's oil & gas reserves decline?   Any plan at all?   Bueller?  ...  Bueller?  ...  Bueller?  ...

 

Korean Shipyards Draw $20 Billion of Work From Qatar

Qatar has signed a deal worth around $20 billion with South Korean shipbuilders to help cement its position as the world’s largest producer of liquefied natural gas.

The Gulf emirate entered into agreements with Daewoo Shipbuilding & Marine Engineering Co., Hyundai Heavy Industries Co. and Samsung Heavy Industries Co., according to a statement on Monday from state producer Qatar Petroleum. The three firms will reserve a “major portion” of their LNG ship-construction capacity for QP through 2027.

The deal, valued at around 70 billion Qatari rials ($19.1 billion), could see them build more than 100 LNG vessels for Qatar, QP said.

The shares of Daewoo Shipbuilding and Samsung Heavy soared more than 15% on Tuesday in Seoul.

“We have everything in place to commence the largest LNG-shipbuilding program in history,” said Saad Al-Kaabi, QP’s chief executive officer and Qatar’s energy minister. “We have secured approximately 60% of the global LNG shipbuilding capacity through 2027.”

QP signed a similar agreement with Hudong-Zhonghua Shipbuilding Group Co., a subsidiary of China State Shipbuilding Corp., in April. It needs a bigger fleet of LNG carriers because of new projects at home and in the U.S.

Qatar is “moving full steam ahead” with the expansion of the North Field, its share of the world’s biggest gas deposit, Al-Kaabi said. That will raise the country’s annual LNG exports from 77 million tons to 126 million tons by 2027, he said.  ...

 

[NickW + 2,714]

On 6/2/2020 at 9:14 AM, Tom Kirkman said:

Qatar's primary source of revenue is oil & gas.  Mostly a one trick pony. 

Oil & gas and LNG provide about 3/4 of total government revenue, and around 85% of export earnings. 

Qatar has the world's third largest proven natural gas reserve and is the second-largest exporter of natural gas.

And so Qatar has little choice except to expand its exports of LNG in order to keep its oil & gas and LNG revenue streams flowing.  Regardless of the prices of LNG.  Because ... mostly a one trick pony.

What is Qatar's plan when it's oil & gas reserves decline?   Any plan at all?   Bueller?  ...  Bueller?  ...  Bueller?  ...

 

Their sovereign wealth fund is about $350bn which I assume is mostly foreign investments. Of course this may just be a slush fund for the Al Thanis if it all goes pop. 

Their population minus the slave labour  guest workers is about 313,000

Assume 4% real rate of return on that investment

Thats about $37000 per head per year at that rate. 

Certainly more than enough to live on. I don't think it will allow them to stretch to 5 maids each, gardeners etc plus all the technical expertise to run industry & government so they have to start learning to do things for themselves. 

In terms of local resources - sand, solar and salty water and thats about it. 

From my time in the ME this is what I always found so bizarre (in bold) 

For two decades, Qatar has had the highest per-capita carbon dioxide emissions in the world, at 49.1 metric tons per person in 2008.^[207] Qataris are also some of the highest consumers of water per capita per day, using around 400 litres.^[208]

Also:

The rate of groundwater extraction in 1966 was 20 million m³/year. This increased to 120 million m³/year by 2000. Studies have approximated that aquifer storage will be completely exhausted by 2025.^[23

So completely reliant on desal then. 

 

 

 

Edited June 3, 2020 by NickW