Qatar signs US$900 million deal for vessels
The Qatar Gas Transport Company Limited (Nakilat) and Overseas Shipholding Group Inc. (OSG) joint venture and Qatar Liquefied gas Company Limited (II) (QGII) on Wednesday signed agreements with Hyundai Heavy Industries and Samsung Heavy Industries for the purchase and time charter of four 216,000 cubic metre large Liquefied Natural Gas (LNG) vessels.
According to The Peninsula, the joint venture, which is 50.1 per cent owned by QGTC and 49.9 per cent, owned by OSG, will buy the four new vessels for a total price of about US$900 million. The joint venture has placed orders for two vessels from each Hyundai and Samsung, to be built in South Korea.
QGTC entered into the joint venture with OSG in November 2004.
The new vessels will have twinned slow speed diesel engines and will have on-board liquefaction capability to handle cargo boil off. The ships will be some 60 per cent larger than the average vessel operating today.
Upon delivery in 2007 and 2008, these vessels will start 25-year time charters to QGII, with options to extend. The vessels are intended for use to transport LNG from Qatar to the United Kingdom.
All marine activities within Qatar are going to be handled by QGTC not only for LNG transportation, but also LPG, sulfur, dry dock, repair facility, ship handling etc. as part of its portfolio. The QR500m dry dock facility, part of the Ras Laffan Port expansion project is planned to begin operations by 2008.