06-02-07 As a further step in its massive ship acquisition programme, the Qatar Gas Transport Company (Nakilat) has signed contracts with two Korean shipyards for the construction of 4 "QFlex" and 4 "QMax" LNG vessels bringing the total of Nakilat's wholly-owned LNG carriers on order to 25.
The "QFlex" and "QMax" vessels are significantly larger than conventional LNG carriers, the "QMax" being the largest size of LNG vessel on order with a capacity of around 266,000 cm and a delivered cost of around $ 300 mm, Nakilat said.

According to Muhammad Ghannam, Nakilat's Managing Director, these latest 8 ships will be built by leading Korean shipyards, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries. These vessels, once delivered from the shipyards in October 2009-February 2010, will be dedicated to the carriage of LNG for the QatarGas 4 project.
The ships will be powered by twin slow-speed diesel engines and will have full scale on-board re-liquefaction plants which will maximiseLNG deliveries to QatarGas 4's customers. Modification of existing shore side technology, namely re-liquefaction plant, to onboard use allows the vessels to use more efficient slow speed diesel engines instead of the traditional but less efficient steam turbines.

Following a major series of orders in 2006, the 25 LNG carriers on order for Nakilat owned companies, represents an investment in the region of $ 7.5 bn. In addition to these wholly-owned vessels Nakilat has approximately 43 % interest in a further 29 LNG carriers, representing an additional investment in the region of $ 2.9 bn, already delivered or on order to service Qatar LNG projects. Other Nakilat investments, including partial ownership of LPG vessels, will add more than $ 1 bn to Nakilat's total investment.
"The new vessels will be used to transport LNG from QatarGas 4's single-train project at Ras Laffan, which will have a production of 7.8 mm tpy with an expected start-up date in 2010," said Ghannam. "Seen against the background of Nakilat's highly successful financing with the initial $ 4.3 bn phase closing at the end of 2006, these new orders will provide long term assets for Nakilat and help to enhance shareholder value"

The latest orders mark the conclusion of a hectic 12 months for Nakilat. Apart from the LNG vessel orders, they have seen Nakilat's appointment of Shell International Trading and Shipping Company Limited to provide a range of shipping and ship management services, with transfer of know how and expertise, to enable Nakilat to develop its own ship management capacity in Qatar.
They have also seen the closing in December of a ground-breaking $ 4.3 bn debt facility for Nakilat's wholly-owned subsidiary, Nakilat Inc., which is believed to be the largest single round of LNG vessel financing ever achieved. Nakilat is now in the process to form a joint venture with Keppel Offshore & Marine to develop and manage a major new facility in the Port of Ras Laffan for the construction, repair and maintenance of ships and other marine structures.

Nakilat was also awarded a 22-year service contract by Qatar Petroleum (QP) for harbour towages and mooring services for Ras Laffan port, the value of which is in excess of QR 1.5 bn.
In parallel, Nakilat signed a joint venture agreement with Svitzer Middle East to provide the harbour towages and mooring services under the above long term contract with QP.