Qatar deal for more LNG carriers to be confirmed

The Qatar Gas Transport Company (Nakilat) is expected to procure 50 LNG ships by 2012 with delivery slated from the third quarter of 2007 until 2012. The ships, a combination of 215,000 cubic metre Q-Flex and 265,000 cubic metre Q-Max vessels are intended to provide the Qatar ventures with a significant transportation cost advantage.

Qatargas-II has already ordered six Q-Max ships which, for the first time, will be fully-owned by Nakilat, and this company, together with Qatargas-III, is now negotiating for 10 additional vessels, three Q-Flex and seven Q-Max, which will also be fully-owned by them. Qatargas III is an integrated project involving a new LNG train at Ras Laffan, with an annual LNG capacity of 7.8mn tonnes and is slated for completion in 2009/2010.

With Qatar targeting an LNG export capacity of 77mn tonnes by 2012, it would require in excess of 50 tankers in the next five to six years. Qatargas trains II, III and IV will require some 30 ships to ferry their LNG production while RasGas requires about 22 tankers. With rising ship building costs and shipbuilding slot limitations that could impact the planned LNG train start-up, the Qatar Ship Acquisition Team (QSAT) secured sufficient vessel slots through 2012 with Korean shipyards Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries. QSAT has negotiated slots for over 50 ships for all their requirements and is reaping the benefits in terms of lower newbuilding prices while the new ships are guaranteed to meet the company?s targets.

Nakilat has stated that all their future LNG newbuildings would be of Q-Flex and Q-Max size as Qatar?s LNG industry has decided to stop building smaller ships that cannot meet the requirements of the targeted markets. The technical and commercial shipping teams, led by Qatargas II with the support of partners ExxonMobil, Shell and ConocoPhilips, have spearheaded this technological and commercial breakthrough. This development has allowed the new ships to utilise more efficient slow speed diesel engines for propulsion while the boil-off-gas, typically used to fire on-board boilers, will now be preserved as high-value cargo. This technology, it is claimed, will reduce the transportation costs by 30-40%.

Nakilat is involved in joint venture partial or 100% ownership in Qatar?s LNG ships as well as in building and operating a new world class ship repair and dry dock facility in Ras Laffan which will be ready by end 2009 and will comprise of three docks ? two engraved and one floating. Nakilat is in a deal with Singapore-based Keppel Offshore & Marine to jointly develop and manage the Ras Laffan facility for the construction, repair and maintenance of ships and other marine structures. The new dry dock would be suitable for the repair and maintenance of very large LNG carriers and other vessels including FPSOs and FSOs and the construction of specialised small ships such as offshore supply vessels.