RG24_06_09_Vision vFLR

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              Qatar's                             Nakilat is indisputably Qatar’s pre-eminent shipping
                                                  company and, like so many of the enormous projects that
                                                  Qatar has undertaken in the last decade, its financial figures
                                                  and scale of works are dizzying in their magnitude. And
                                                  this is just the beginning of Nakilat’s journey. In the last
                                                  four years we have seen phenomenal expansion and great

                                                  successes, but even more is planned for the near future.
                                                     We have a vision and strategy to become the
                                                  world’s leading owner and operator of vessels for
                                                  the transportation of liquefied natural gas (LNG) and
                                                  associated products. As ambitious as that vision sounds,
                                                  it almost understates the strategic importance of Nakilat’s
                                                  role to Qatar’s LNG industry. To put it into context, the
                                                  economic phenomenon of Qatar is largely underpinned by

                                                  its huge investment in LNG facilities and the establishment
                                                  of a global network of customers. These customers, as
                                                  far afield as India, Japan, Korea, China, Europe and the
                                                  USA, rely on Qatar’s ability to deliver LNG on time and
                                                  regularly. Nakilat, together with its ship-owning partners,
                                                  is responsible for that floating pipeline of ships stretching
                                                  out across the world’s seas and oceans to distant shores.
                                                     The company’s success in rising to this strategic
                                                  challenge is due to the support we get at all levels, from
                                                  the head of the State of Qatar to the people on the ground.
               Muhammad A Ghannam                 It started with HH The Emir, Sheikh Hamad Bin Khalifa Al
                                                  Thani’s vision to make Qatar a sustainable and prosperous
               is Managing Director of Qatar      state for the benefit of all its citizens. The vision now
               Gas Transport Company              extends to our Board of Directors’ strategic emphasis on
                                                  outright ownership of this key part of the LNG supply
               (Nakilat), Qatar’s leading         chain, through to the concerted efforts of the many
                                                  shipping partners, charterers and Nakilat employees who
               shipping company and               ensure that Qatar’s floating pipeline keeps flowing day and
                                                  night, all year round.
               effectively the state’s floating      Back in 2004 when we founded Nakilat, LNG production
                                                  with its associated work streams, such as extraction and
               pipeline to the world. Nakilat     refining, was well developed – ownership of assets and

               is a vital link in ensuring that   management expertise were well established. However,
                                                  the delivery system, the fleet of LNG ships that moves
               Qatar’s LNG is delivered           Qatar’s LNG around the globe was seen as a strategic part
                                                  of the supply chain. It meant that Nakilat could support
               to global customers on time        the State of Qatar by accumulating a large proportion of
                                                  the ownership in the LNG transportation chain, ensuring
               and cost-efficiently               Qatar's 'floating pipeline' remains largely owned by the
                                                  state and ultimately the Qatari people.



                        The amount of LNG targeted for export from Qatar
                     to the world has been projected to be 77 million tonnes
                     per year (Mta) by 2010. This is a phenomenal amount to
                     transport and an enormous amount of work had to be set
                     in motion to make it happen.
                        To create a fully integrated LNG shipping industry for
                     Qatar, Nakilat had to:
                     • expand its existing shipping capacity and build more and
                       bigger ships
                     • assemble the key support components, such as dry dock
                       and repair facilities that could handle our large LNG ships
                     • find the best people to run it
                     • raise the finance to pay for it all

                         For the financiers there was a clear business case.
                     Qatar’s LNG industry’s growth over the next 25 years is
                     assured. There will be plenty of shipping needs thanks to             In order to gain ship management and expertise, Nakilat
                     charter agreements with RasGas and Qatargas, realising an          signed a long-term contract with Shell Transport & Trading
                     attractive rate of return, so financing was obtained with little   Co (Stasco) to manage the 100 per cent Nakilat fleet with
                     difficulty. Nakilat achieved an A+ rating by Standard & Poor       a progressive handover to Nakilat commencing in year eight
                     and, to top it all, received an award for 'best deal' in 2006      and completed by year 12, followed by a technical services
                     by Euromoney and Marine Money International.                       agreement running for several years after final handover to
                         We had secured 100 per cent ownership and good                 ensure continuity.
                     financing. Now we had to develop the organisation and staff           The shipyards in Korea have been working non-stop to
                     it. A first-class organisation with a heavy emphasis on safety     ensure Nakilat is on track to be the largest LNG ship owner
                     and environment was required. We decided that a long-term          by capacity in 2010, almost double the capacity of its
                     process with achievable milestones that proceeded cautiously       nearest competitor, NYK lines from Japan. With a total of
                     would be the best way to go. It was a prudent judgement            54 vessels and exclusive ownership of 25 new-generation
                     given all that was at stake: the tight timeframe, the need for     Q-Max and Q-Flex ships, we will have become a world
                     the right people, and the commitments that had been made,          leader in less than three years. These large LNG ships also
                     especially to Qatar.                                               include a number of firsts and significant enhancements

                                                                                                         QataRGas names fiRst
                                                                                                         nakilat Q-max Vessel

                                                                                                         On 11 July 2008 at the samsung
                                                                                                         Heavy industries shipyard in Busan,
                                                                                                         south korea, HH sheikha mozah Bint
                                                                                                         nasser al missned named mozah,
                                                                                                         the first Q-max lnG carrier and the
   With a total of 54 large                                                                              world’s largest lnG vessel built to
                                                                                                         date. mozah will transport lnG to
   vessels and exclusive                                                                                 customers in europe.
   ownership of 25 new-                                                                                     “this ship is not only the largest
                                                                                                         and most advanced lnG carrier in the
   generation Q-Max and                                                                                  world,” said He abdullah Bin Hamad
                                                                                                         al attiyah, Deputy Premier, minister
   Q-Flex ships, we will                                                                                 of energy and industry, and Chairman
   have become a world                                                                                   of nakilat. “it also demonstrates
                                                                                                         our ability to achieve our vision of
   leader in less than                                                                                   becoming the largest lnG shipowner
   three years                                                                                           in the world. in addition, it shows
                                                                                                         the vision and dream of a nation,
                                                                                                         the determination and capability
                                                                                                         of an industry, and the dedication
                                                                                                         and commitment of thousands of
                                                                                                         individuals from around the globe
                                                                                                         who have contributed to Qatar’s
                                                                                                         lnG industry.”


that will provide improved operational and safety benefits to      So, what’s next for Nakilat? We are already a giant,
owners and charterers. These include onboard reliquefaction      but we will get bigger. By 2010, Nakilat will own 54 LNG
units, slow-speed diesel engines, twin propellers and            vessels, making it one of the largest LNG ship owners in the
rudders, larger membrane cargo tanks, the latest in hull anti-   world. We have already begun to expand and build a ship
fouling protection and improved fire-protection systems.         repair yard at Ras Laffan which will provide dry docking and
   Protection of the environment is of paramount importance      repair services to all maritime vessels, not just LNG ships.
to Nakilat, as it is for every player in the LNG supply chain.   The yard also plans to undertake shipbuilding in the future,
Although LNG is already a very safe substance (there has         opening up further markets. We are providing port agency
never been a major incident at sea), the importance of           services to all local and international maritime traffic in Ras
personnel safety and environmental protection requires           Laffan. When the 77 Mta of LNG is not sufficient, Nakilat
a focus and effort that Nakilat takes very seriously.            will be ready to undertake whatever expansion is necessary
   Nakilat is proud of its recent achievement of 8 million       to meet the increased demand.
hours worked without incident and we keep focused on
making sure everything goes smoothly and safely all of the
time. Our systems and procedures to ensure safety and
avoid environmental misfortune are the product of many
hours of collaboration with peers in the industry, such as
RasGas, Qatargas and their respective partners.
   This is a collaboration that extends beyond safety
and environmental issues for members of Qatar’s LNG
family. Other synergies exist. For instance, across the LNG
industry in Qatar, we have a single team overseeing the
construction of new ships, which includes people seconded
from industry peer companies and others, representing
all stakeholders, such as charterers. As a result any
                                                                 One Nakilat Q-Max ship
modifications or improvements to operational processes           holds enough LNG to power
are always shared across the various project members and
other partners in the LNG industry, and signed off by them       the energy requirements of
in order to ensure consistency and avoid duplication. We
are in constant communication and nobody works in silos
                                                                 approximately 26 million homes
because the stakes are too high.                                 in the UK for one day

                                     faCts anD fiGuRes

                                     Q-flex lnG vessels are designed to have a standard           length of less than 300m and an average capacity of
                                     cargo-carrying capacity of 216,000m3 and a length            122,000m3. the improved cargo-carrying capacities of
                                     of 315 metres. Q-flex lnG vessels are significantly          the Q-flex lnG vessels result in lower transportation
the dimensions and volume
of nakilat's vessels are hard to     larger than the ships in the current global lnG              costs per unit of lnG, because they allow more lnG to
grasp at first sight                 vessel fleet. these conventional lnG vessels have a          be transported per journey. the dimensions of Q-flex
                                                                                                  lnG vessels still allow them access to approximately
                                                                                                  two-thirds of the primary existing lnG terminals
                                                                       scale of the new ships
                                                                                                  worldwide. as implied by the ‘flex’ notation, some
                                                                                                  existing lnG terminals have the flexibility to handle
                                                                                                  the Q-flex vessels with minor modifications.
                    9 LNG Vessels                                                                   Q-max lnG vessels are designed to have a cargo-
                    Conventional (145,000 – 154,000 m3)                                           carrying capacity of up to approximately 266,000m3
                                                                                                  and a length of 345m. Q-max lnG vessels are the
                                                                                                  largest lnG carriers in the world and have principal
                                                                                                  dimensions slightly less than conventional very large
                                                                                                  crude vessels. as with the Q-flex lnG vessels, the
                                                                                                  improved carrying capacities of the Q-max lnG
                    31 LNG Vessels
                    Q-Flex (210,000 – 216,000 m3)                                                 vessels result in lower transportation costs per journey
                                                                                                  when compared to traditional lnG ships. While the
                                                                                                  Q-max lnG vessels are beyond the capacity of some
                                                                                                  ports, nearly half of the world’s existing lnG terminals
                                                                                                  can, or with minor modifications could, accommodate
                                                                                                  these ships.
                    14 LNG Vessels
                    Q-Max (263,000 – 266,000 m3)

                                                                                                                                        RasGas MAGAZINE 09

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