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 Volume 2, issue #18 - 26-06-1997

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Qatar's LNG trade prompts 10 carrier orders

June 7, 1997 Qatar's LNG export programme has generated orders for 10 new 135,000 cm LNG carriers, each with an estimated price tag of $ 230 mm. The first of these expensive and highly sophisticated ships, the Al Zubarah, built at Mitsui's Chiba works, was delivered and made its first loaded voyage in December last year. Since then two sisterships, the Al Khor and Al Rayyan, have entered service and the fourth, the Al Wajbah, is due to be handed over in June. Six more vessels will be delivered over a period from early 1998 to mid- 2000.
The LNG carriers, which are being long term chartered by Qatargas, are owned by a group of Japanese owners including Kawasaki Kisen Kaisha, Mitsui OSK, NYK, Showa Line and Iino Kaiun Kaisha.
The vessels are being constructed by three Japanese shipbuilders: Kawasaki, Mitsubishi and Mitsui. Each of the ships has a 19.5 knot service speed and is designed to undertake a round trip voyage, Qatar-Japan-Qatar, in 31 days. With four ships in service, Qatargas expects to be able to ship at least 35 cargoes a year.
Sheikh Mohammed A Al-Thani, acting general manager of Qatargas commercial and shipping department, says: "So far the operation has gone extremely smoothly. The customer, Chubu Electric, was most impressed that we delivered the first consignment right on schedule on January 10."
The LNG ships are generally being discharged at the Kawagoe terminal, a new facility built by Chubu Electric at Ise Bay, Nagoya. Some of the ships will also be discharged at the Chita terminal. Chubu Electric has signed to take 4 mm tonnes a year of LNG from Qatargas. A further agreement with a group of 7 Japanese buyers - including 4 electricity generators and 3 gas companies - will come into effect in 1998, involving an additional 2 mm tpy.

Ras Laffan Liquefied Gas Company Limited (Rasgas), another subsidiary of QGPC, has a commitment to supply Korea Gas. This is, however, a fob project for which transport will be provided by the Koreans.
Qatargas could still develop other markets outside Japan in the future. It is stressed, though, that no more LNG carriers will be acquired to support its operations unless further sales are made.



copyright Alexander Wostmann