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Nakilat Inc., a wholly owned subsidiary of Qatar Gas Transport Company Ltd (Nakilat), successfully has raised USD 1.5 billion of debt under its existing program financing (the "Program Financing") from a group of 12 international and regional banks, together with Korea Export Insurance Corporation ("KEIC").

The incurrence of such debt will keep Nakilat adequately funded and solidly on track to complete its acquisition of a fleet of 25 LNG vessels currently under construction at the shipyards in Korea operated by Daewoo Shipbuilding and Marine Engineering Co., Ltd, Hyundai Heavy Industries Co., Ltd., and Samsung Heavy Industries Co., Ltd.

The USD 1.5 billion debt financing completed today (the "Tranche II Debt") is part of the approximately USD 2.5 billion additional debt (the "Additional Program Debt") that Nakilat intends to raise over the coming 18 months in line with the flexibility offered by its Program Financing.

The Tranche II Debt will be used to fund the construction of Nakilat's fleet of 25 LNG vessels, each of which is subject to a 25-year time charter to one of Qatar Liquefied Natural Gas Company Limited (II) ("Qatargas II"), Qatar Liquefied Natural Gas Company Limited (3) ("Qatargas 3"), Ras Laffan Liquefied Natural Gas Company Limited (3) ("RasGas 3") and Qatar Liquefied Gas Company Limited (4) ("Qatargas 4").

The Tranche II debt comprises (i) a USD 925 million senior bank facility with a tenor of 17 years, (ii) a USD 125 million subordinated bank facility with a tenor of 17 years, and (iii) a USD 450 million senior bank facility insured by KEIC with a tenor of 12 years.

Nakilat's fleet of 25 wholly-owned state-of-the-art large LNG vessels will be financed by the Program Financing. In addition to the wholly-owned ships being acquired by Nakilat, QGTC has an ownership stake (43% on average) in 29 other LNG vessels, all of which are backed by long term time charters.

According to Muhammad Ghannam, QGTCs Managing Director, Nakilat's 25 wholly-owned vessels, scheduled to be delivered by the shipyards between 2008 and 2010, will serve as the floating pipeline to carry LNG for the Qatargas II, Qatargas 3, RasGas 3 and Qatargas 4 projects, which will together produce over 77 mmtpa of LNG.

Mr. Ghannam stated, "The Nakilat Inc. Tranche II Debt financing once again proves Nakilat's prime status in today's financial market. Investors appreciate the strength of Nakilat in a challenging market. This is best demonstrated by the strong appetite from a group of anchor investors who value the financing underpinned by strong charter contracts with Qatari LNG projects.

We look forward to closing the remaining financings for the Additional Program Debt and will continue to strive to identify additional high-yield investment opportunities to maximize returns to our shareholders." SMBC served as overall financial advisor in the Tranche II Debt. Latham & Watkins advised Nakilat on commercial and legal matters while Skadden, Arps, Slate, Meagher & Flom advised the lending group.

Independent consultants on the deal included Lloyd's Register EMEA, Drewery Shipping Consultants, Marsh Ltd, and Stone & Webster Consultants. Holman Fenwick & Willan advised Nakilat Inc. and QGTC on time charter, ship building and ship management contracts.

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