Qatar Gas Transport Company (Nakilat) and Shell have formally signed a 25-year deal on the management of Nakilat’s fleet of gas tankers, the companies announced today.
Under the agreement, the Dutch oil giant will operate Nakilat’s fleet of around 25 newbuilt vessels, which will be put into service over the next four years.
The tankers, which have capacities ranging between 210,000 cubic metres and 266,000 cubic metres, will be used to transport liquefied natural gas (LNG) from four of Qatar’s major LNG facilities: Qatargas II, Qatargas 3, Qatargas 4 and RasGas III (Train 7).
A key part of the agreement is the transfer of knowledge to Nakilat, with the goal of Nakilat taking over operational management of the ships within 12 years of the delivery of the last vessel.
“As Qatar becomes the leading producer of LNG in the world, the requirement to have in place a world-class LNG shipping operation is essential,” said Faisal Al Suwaidi, vice chairman of Nakilat and CEO of Qatargas.
“With the signing of this agreement, we are setting the foundations for the development of all the necessary LNG shipping capabilities to meet our growing global requirements.”
Nakilat said it also has equity interests ranging from 20% to 60% in a further 29 LNG carriers and a 50% stake in four other LPG vessels.
Also today Qatar Petroleum (QP) and Shell announced the incorporation of Qatar Liquefied Gas Company, a joint venture between affiliates of the two companies, which will own the Qatargas 4 facility’s onshore and offshore assets.
The newly formed joint venture company has signed a sale and purchase agreement (SPA) with a Shell affiliate as buyer of all the LNG volume produced by Qatargas 4.
Qatargas 4 comprises upstream gas production facilities to produce approximately 1.4 billion cubic feet of natural gas per day, including an average of approximately 24,000 bbl/d of LPG and 46,000 bbl/d of condensate from Qatar’s North Field over the 25-year life of the project.
Qatargas 4 LNG volumes are intended to flow primarily into natural gas markets in the eastern United States.
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