Doha, Qatar, July 11, 2007: Qatar Gas Transport Company Ltd. (Nakilat) and Shell International Trading and Shipping Company Limited (Shell) formalised the November 2006 execution of the Master Services Agreement, in which Shell was appointed as the shipping and maritime services provider for Nakilat's fleet of some 25 newbuild liquefied natural gas (LNG) carriers, with a ceremonial signing today.

Shell will provide a full range of shipping services for Nakilat including staff recruitment, training and operational management of the vessels. A key element of the agreement is the commitment to the development of Nakilat's shipping expertise, in support of its aspiration to become a fully integrated LNG shipping company. Under this 25 year deal, the intention is for operational management of the ships to be transferred to Nakilat within 12 years of the delivery of the last vessel.

Nakilat's fleet of LNG vessels, currently under construction, will be put into service over the next four years to transport LNG from four of Qatar's major LNG projects: Qatargas II (Train 5), Qatargas 3 (Train 6), Qatargas 4 (Train 7) and RasGas III (Train 7). These vessels will have capacities ranging between 210,000 m3 and 266,000 m3.  Nakilat has equity interests (ranging from 20% to 60%) in a further 29 LNG carriers and also has a 50% stake in four LPG vessels.

Faisal Al Suwaidi, Vice Chairman of Nakilat and CEO of Qatargas commented, "As Qatar becomes the leading producer of LNG in the world, the requirement to have in place a world-class LNG shipping operation is essential. With the signing of this agreement, we are setting the foundations for the development of all the necessary LNG shipping capabilities to meet our growing global requirements. Shell's extensive experience and excellent track record in this area make them an ideal partner and we look forward to building a successful LNG shipping organisation together."

Linda Cook, Executive Director, Royal Dutch Shell plc, stated, "Shell has been transporting LNG around the world safely and reliably for more than 40 years and we are proud to partner with Nakilat in the development of its LNG shipping capabilities.  Through this agreement we are adding another dimension to our growing partnership with Qatar.  We have already begun to recruit and train the required personnel to make the partnership a success."

-Ends- 

Qatar Gas Transport Company Ltd. (Nakilat)
Nakilat was formed in June 2004 and is a joint stock company owned 50% by its founding shareholders and 50% by the public as a result of an IPO issued early 2005. It is publicly traded on the Doha Securities Market (DSM).

In addition to owning LNG tankers, Nakilat is involved in a number of other marine related ventures in the State of Qatar. These include:

  • the design, building and operation of a state of the art ship repair yard (drydock facility) in Ras Laffan which is expected to be operational by end 2009;

  • ownership of vessels to transport the associated products of LPG, sulphur and condensate produced by Qatar gas projects;

  • Nakilat Agency Company which is the exclusive agent for all ships calling at the port of Ras Laffan owning and operating tug boats, pilot boats and other harbour craft in the port of Ras Laffan;

  • Nakilat Fuji which is a ship chandlery business providing food, provisions and stores to vessels calling at Qatari ports, and warehousing services essentially for LNG vessel spare parts in Ras Laffan.

Shell International Trading and Shipping Company Limited (Shell)
Shell International Trading and Shipping Company Limited (Shell) provides trading and shipping services for Shell Group operating companies and third party customers. Along with trading activities in crude oil and oil products, Shell manages a large fleet of oil tankers and gas carriers and charters additional vessels to transport Shell and third party cargoes around the world.  Shell also provides shipping advice, services and expertise to Shell operating companies and Joint Ventures in more than 40 countries.

Shell manages one of the largest LNG fleets in the world. With four decades of LNG shipping expertise, Shell provides a comprehensive range of services from feasibility and development studies through to ship/shore operations management, vessel acquisition and vessel management.

For further information contact:
Muhammad Ghannam at Nakilat on +974 4672283
Carlos Ibarguen, Shell Qatar on +974 495 7789
Catherine Aitken, Shell Shipping on +44 20 7934 8082

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© Press Release 2007