Mubasher: As regional energy companies try to solidify their oil and gas market share over the long term, competition in the Arabian Gulf region amongst national oil companies (NOCs) to establish global energy dominance has paved the way for a boom period for the shipbuilding industry, according to a recent report by GlobalData's MEED.
Saudi Arabia’s maritime needs are seen to significantly grow as the kingdom prepares to increase its global oil market share and become a net natural gas exporter.
Regional NOCs’ long-term need for transport vessels has grown exponentially. This growth in demand has, in turn, led Gulf NOCs to make considerable shipping investments, providing key stimulus to the maritime industry.
Saudi Aramco is building the world-class King Salman International Complex for Maritime Industries and Services in Ras Al Khair via a joint venture (JV) of international shipbuilding and offshore energy firms.
The Saudi giant, which holds a majority 50.1% stake in International Maritime Industries (IMI), along with other partners, namely, the National Shipping Company of Saudi Arabia (Bahri), UAE/UK-based Lamprell, and South Korea’s Hyundai Heavy Industries (HHI) have invested $5.2 billion in building the Ras Al Khair scheme.
Spanning an area of 11.4 million square metres, the King Salman complex will showcase the world’s largest ship lift. It is designed to have the capacity to manufacture four offshore rigs and more than 40 vessels while servicing over 260 vessels per annum.
Meanwhile, Qatar Petroleum (QP) has launched the liquefied natural gas (LNG) vessel building programme at $19 billion, as it aims to hold on to the top global LNG exporter position.
QP is collaborating with the big three South Korean shipyards, namely Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries (HHI), and Samsung Heavy Industries (SHI) to reserve a major portion of their LNG vessel construction capacity until 2027.
Moreover, QP’s LNG production capacity is likely to rise to 126 million tonnes a year (t/y) via two phases by 2028, compared to a current 77.5 million (t/y).
