Doha - Qatar Gas Transport Company Ltd (Nakilat) is to acquire 10 more LNG carriers worth approximately $3 billion for a 25-year time charter to Qatar Liquefied Gas Company (III) or QatarGas 3.
An agreement was signed here yesterday for the seven QFlex and three QMax LNG carriers between Nakilat and Korean shipyards Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries. A time charter agreement was also signed between Nakilat and QatarGas3.
Present at the signing ceremony were Faisal Al Suwaidi, CEO of QatarGas, Muhammad Ghannam, QGTC Managing Director; T J Hwang, Vice-President (Ship Marketing Division), Daewoo Shipbuilding and Marine Engineering; H Y Lee, Vice-President, Samsung Heavy Industries; and B T Ahn, Senior Vice-President (Ship Sales), Hyundai Heavy Industries.
Faisal Al Suwaidi, CEO of QatarGas told reporters that while the upfront price tag for each ship is approximately $300 million, the deal for the 16 LNG carriers represents an investment of some $ 5 billion.
He said QatarGas 3 will use the LNG carriers to transport LNG from its train 6 which will have a production of approximately eight million tonnes per year.
The latest order brings Nakilat's total to 16 LNG carriers on order with the company planning to almost double its fleet to some 60 vessels by 2009. In addition to these fully-owned carriers, Nakilat owns 30-60 per cent in another 28 LNG carriers either delivered or on order to serve Qatar LNG projects.
The three QMax vessels with a capacity of approximately 265,000 cubic metres the largest LNG carriers ever built and the seven QFlex vessels with a capacity in the range of 215,000 cubic metres are slated for delivery in 2009.
QGTC Managing Director, Muhammad Ghannam said the 'state of the art' vessels, once delivered from the shipyards, will be placed on long-term charter to QatarGas 3 beginning from January 2009.
"It has always been the goal of QGTC to fully own and eventually operate LNG carriers for Qatari projects.
We expect to order more vessels over the next two to eight months to achieve our goal of becoming the world's largest LNG ship owner", he said.
Asked whether Nakilat was planning to go for overseas borrowing, Ghannam said that the company is already in the process and that good progress has already been made on the issue.
In reply to a question on whether the rising interest rates had an impact on the company's liabilities, he said: "We are in the market and we are getting good rates. Qatar has a very good reputation and lenders are more than forthcoming".
The Peninsula 2006
