Teekay consortium wins Qatar LNG order

Teekay Shipping Corporation, the world?s largest oil-tanker company, and Mitsui OSK Lines, Japan?s second-biggest shipping line, are among a group set to win a $3bn order for LNG tankers from Qatar. The group of companies has “tentatively won” the order to build and operate the 12 gas tankers to carry LNG to the US although the contracts, among the largest in the world, await board approval.

Bahamas-based Teekay will team up with Samsung Heavy Industries to build and operate four 215,000 cubic metre LNG tankers at a cost of around $250 million each. Japanese ship owners Mitsui OSK, Nippon Yusen KK, Kawasaki Kisen Kaisha Ltd, Iino Kaiun Kaisha Ltd and trading house Mitsui & Co Ltd will join with Hyundai Heavy Industries Company and Daewoo Shipbuilding & Marine Engineering Company to build eight LNG tankers.

Teekay expects to order about 20 more LNG ships later this year which could involve even larger tankers up to 260,000 cubic metres. According to Qatar Gas Transport, it needs to add 70 LNG tankers by 2010 to deliver the fuel to remote markets such as Europe and the US. Qatar is teaming up with ExxonMobil Corporation, Total SA, Royal Dutch/Shell Group and ConocoPhillips in a bid to be the top LNG exporter by the end of the decade.

Qatar Gas Transport, which is listed on the Doha Securities Market, ordered last year the world?s first LNG ships to have a capacity exceeding 200,000 cubic metres, the so-called Q-flex ships which have a capacity of 215,000 cubic metres.