At the start of this year, Nakilat, Qatar’s leading LNG shipping company, had a robust fleet of 74 vessels. Fast forward six months, and they’ve made waves by securing contracts for 40 additional newbuilds. This strategic leap will see their fleet soar to 114 vessels—an impressive increase of over 50%!
This remarkable growth is set to propel Qatar’s ambitious plan to nearly double its LNG export volume, highlighting Nakilat as a beacon of stability in unpredictable times. With the highest credit rating in the shipping industry, Aa3 by Moody’s.
Boasting $715 million in cash reserves and majority ownership by financially robust Qatari entities, Nakilat is poised to ride the wave of global demand for LNG. The end of the decade promises to see an expansion in global natural gas liquefaction capacity by up to 200-300 million tonnes per annum. Qatar, with its vast reserves and aggressive expansion plans with QatarEnergy, is playing a pivotal role in this surge. 🔥🌍
Earlier this year QatarEnergy has officially selected Qatar Gas Transport Co Ltd (Nakilat) as the owner and operator for up to 25 conventional LNG carriers. These agreements await finalization through time charter parties (TCPs) between QatarEnergy affiliates and Nakilat.
This marks the initial wave of awards in the second phase of QatarEnergy’s ambitious LNG fleet expansion. In the near future, additional vessel owner announcements are expected as the selection process continues.
Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and the President and CEO of QatarEnergy, expressed enthusiasm about this significant step towards building a future LNG fleet that is expected to surpass 100 vessels. “We look forward to announcing the names of additional successful bidders soon,” he stated.
Back in 2022, QatarEnergy concluded the first phase of its fleet expansion by securing TCPs for 60 LNG ships, laying the groundwork for its extensive LNG transport needs stemming from North Field East and North Field South expansion projects. Additional projects like the Golden Pass LNG are also part of the transportation plans, alongside replacing vessels in Qatar’s existing fleet.
Nakilat, set to fully own the 25 vessels, each with a 174,000 m³ capacity, will see their construction unfold in South Korean shipyards. Samsung Heavy Industries recently disclosed a record $3.4 billion deal for 15 LNG carriers, speculated to be part of this expansion.
Buzz surrounds QatarEnergy’s newbuilding reservations, with reports suggesting up to 40 slots secured across several shipyards. Moreover, QatarEnergy initiated the second wave of newbuilding orders with a 17 LNG carrier deal with Hyundai Heavy Industries, valued at $3.9 billion, further pushing the count of confirmed vessels to around 80.
This LNG shipbuilding initiative is crucial for boosting Qatar’s output from 77 million tonnes per annum (mta) to 126 mta by 2028, fulfilling burgeoning transport needs with over 90 LNG carriers averaging 170,000 m³ cargo capacity. The expansion also includes a significant stake in the Golden Pass LNG project, aiming to transport 70% of its capacity.
Overall, QatarEnergy’s strategic reservations of 151 newbuilding slots across Asia are pivotal for meeting future LNG demand and solidifying its position as a global energy leader.
#Nakilat #QatarLNG #ShippingExcellence #GlobalEnergy #MaritimeGrowth
