Three South Korean shipbuilders — HD Hyundai Heavy Industries, Hanwha Ocean Company and Samsung Heavy Industries — are close to finalizing a $9.4 billion deal to build multiple liquid natural gas (LNG) carriers for Qatar.

Shipping companies that have been receiving orders from Qatar Gas (a subsidiary of Qatar Energy) are planning to sign contracts with the three shipbuilders between September and October to construct 40 LNG carriers, according to The Korea Economic Daily. Samsung is expected to receive 16 orders while 14 will go to Hanwha and 10 will go HD Hyundai.

The cost of each vessel is expected to be $250 million, according to the shipping industry observer Clarkson Research, who said the cost of a 174,000 cubic meter LNG carrier was $260 million in June 2023.

At this time, the three shipbuilders are in last-minute talks with shippers regarding details such as construction conditions and contract amounts.

“The three shipbuilders cleared out their docks in advance to build LNG carriers during the second half of the year,” an industry source said.

This will be the second LNG carrier deal South Korean companies have signed with Qatar. The first, which was agreed to in 2021, was comprised of 54 orders.