Maritime matters

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A vast fleet building project has been carried out in South Korea's major yards.

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Nakilat's fleet includes Q-Max vessels, the largest LNG ships ever built.

In addition, Nakilat has contracted to build 25 wholly owned LNG vessels that will be operational in 2008-2010.

"The 28 delivered ships we own in partnership are already delivered and operating, with a further one to come. The remaining 25 ships we will own 100% outright."

All of Nakilat's fleet has been built in South Korea's specialist yards.

"The decision to go with the Korean yards stemmed from exhaustive research which examined yards from all around the world. QatarGas and ExxonMobil found that the Korean Yards met their requirements for safety, price, quality and specification as well as the delivery schedules," says Ghannam.

From the liquefaction plants to the terminals and tankers, Ghannam says its all part of Qatar's grand vision of to dominate the LNG market. "Shipping is like the pipeline for our industry so this tonnage capacity is what is needed in order to reach the potential of the rest of the infrastructure which has been put in place to meet the targets set out by Qatar.

The LNG market is growing very fast. Qatar will support roughly 30% of the global LNG market and it's a market that's growing in size. LNG offers a clean burning energy and that makes it a very popular fuel of choice around the world and a fuel of the future.

Outside of chartering the ships Nakilat has been able to build up a solid base around all marine activities with the grand aim of establishing a successful shipping and maritime service industry for Qatar.

Despite its strong purchasing position, Ghannam says the company has never considered becoming an LNG ship trader.

"Buying and selling vessels isn't the business we're in, we are committed to our core areas. Having said that, we are interested in looking into transporting more of Qatar's by products such as liquefied petroleum gas, sulphur and getting into other shipbuilding services, starting initially with tugboats and service vessels so that we can provide a broad maritime infrastructure for Qatar."

Part of this will include a vast repair and fabrication facility, as well as further vessel ownership and operation covering liquid petroleum gas (LPG) carriers and sulphur vessels.

"We are in the process of starting operations at a world class drydock facility which can accommodate the largest LNG vessels operating today. We are looking to complete the drydock facility next year and we are also entertaining the idea of building offshore structures including rigs and platforms, as well as a small facility to repair and fabricate tugboats."

Shell has been selected as a strategic partner to provide key knowledge transfer services, and operate Nakilat's vessels during the company's infancy.

In terms of shipping volume capacity, when the 54th ship is delivered Nakilat will be the single largest owner of a dedicated LNG fleet in the world.

The corporate model is certainly impressive and has proved adaptable to the needs of Qatar's grand LNG export vision. Challenges remain for Ghannam and his team, but the future for Nakilat couldn't be brighter.

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