QatarEnergy Entrusts Nakilat for 25 New LNG Carriers

In the latest development of its extensive LNG fleet expansion initiative, QatarEnergy has chosen Qatar Gas Transport Company (Nakilat) to take charge of up to 25 conventional-size LNG carriers through time charter parties (TCP). This decision, announced on February 10, marks the inaugural award within the second phase of long-term TCPs under the LNG fleet expansion project.

The 25 vessels, each boasting a capacity of 174,000 cubic meters, will be exclusively owned by Nakilat and leased out to QatarEnergy affiliates. The construction of these LNG carriers is slated to take place at South Korean shipyards.

The commencement of the second phase of Qatar Energy's fleet expansion program began with a substantial $3.9 billion order for 17 newbuild LNG carriers placed at HD Hyundai Heavy Industries (HHI) in September 2023. Furthermore, reports from early 2024 indicated that the company secured a contract with Chinese shipbuilder CSSC Hudong Zhonghua shipbuilding for the construction of eight Q-Max ultra-large LNG carriers, each with a carrying capacity of 271,000 cubic meters, making them the world's largest. Additionally, Qatar Energy is rumored to be behind a recent order for 15 LNG carriers at Samsung Heavy Industries (SHI).

Saad Sherida Al-Kaabi, the President and CEO of QatarEnergy, expressed satisfaction with the partnership with Nakilat, highlighting confidence in Qatar's premier LNG shipping and maritime company. Al-Kaabi also commended Nakilat's competitive success in a global tender, emphasizing its world-class capabilities and contributions to the national economy.

Al-Kaabi mentioned that QatarEnergy is making determined strides in the establishment of its upcoming LNG fleet, which is anticipated to surpass one hundred vessels. He expressed anticipation regarding the disclosure of the names of additional successful bidders in the near future. In 2022, QatarEnergy inked a series of TCPs for the long-term charter and operation of 60 LNG ships, concluding the first phase of its fleet expansion program. The primary aim of this expansion is to support and fulfill the future requirements of QatarEnergy’s North Field East (NFE) and North Field South (NFS) expansion projects.

Moreover, the program will address the shipping needs of QatarEnergy Trading to serve its global LNG portfolio, such as volumes from the Golden Pass LNG export project. A key component of the initiative is also intended to cater to the replacement requirements of the existing Qatar LNG fleet. The holistic approach underscores QatarEnergy's commitment to securing a robust and expansive LNG fleet, aligning with the evolving demands of the global energy landscape.