QatarEnergy and Nakilat Seal Deal for Nine "QC-MAX" LNG Vessel Charters

QatarEnergy has entered a long-term agreement with Qatar Gas Transport Company Limited (Nakilat), under which Nakilat will assume ownership and operation of nine "QC-Max" class LNG vessels, marking the largest LNG vessels ever constructed.

On 8th May 2024, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, along with Mr. Abdullah Al-Sulaiti, CEO of Nakilat, formally signed the agreement. The signing took place during a special ceremony at QatarEnergy's headquarters in Doha, attended by senior executives from QatarEnergy, QatarEnergy LNG, and Nakilat.

The nine QC-Max vessels, each with a capacity of 271,000 cubic meters, represent half of the total 18 advanced QC-Max class LNG vessels slated for construction at China’s Hudong-Zhonghua Shipyard. QatarEnergy’s extensive fleet expansion initiative has involved the execution of shipbuilding contracts and time charter agreements for a combined total of 122 state-of-the-art vessels, encompassing 104 conventional LNG vessels along with the 18 QC-Max class LNG vessels. The anticipated delivery of the first new vessel is set for the end of the third quarter of this year.

In response to this milestone, His Excellency Mr. Saad Sherida Al-Kaabi expressed, "We take great pride in welcoming Qatar's premier LNG shipping and maritime leader to the ranks of esteemed shipowners operating our cutting-edge QC-Max LNG vessels, the largest ever constructed. This serves as further evidence of Nakilat's remarkable capabilities."

Minister Al-Kaabi further stated, "Following last month's signing of the largest single shipbuilding contract in the industry's history, QatarEnergy is steadfast in advancing its monumental LNG vessel expansion program. We have complete confidence that Nakilat and our chosen international shipowners will uphold the highest standards of safety, technical proficiency, and environmental responsibility in operating our fleet."

This long-term agreement comes after Nakilat was chosen in February to own and operate 25 conventional-size LNG vessels. Additionally, this agreement aligns with QatarEnergy's historic LNG fleet expansion program, which includes signing similar agreements in Beijing with three Chinese ship owners to manage nine newly commissioned QC-Max class LNG vessels. This expansion program is designed to meet QatarEnergy's future needs as it progresses with enhancing its LNG production capacity from the North Field to 142 million tons per annum by 2030.

Founded in 2004, Nakilat is a Qatar-based shipping and maritime company. It boasts one of the globe's largest fleets of Liquefied Natural Gas (LNG) carriers, totaling 69 vessels, serving as a crucial transportation component in Qatar's LNG supply network. Additionally, through its wholly-owned subsidiary, Nakilat Shipping Qatar Limited (NSQL), the company oversees the management and operation of one floating storage regasification unit (FSRU), four very large LPG carriers (VLGCs), and 24 LNG carriers.