QatarEnergy and Nakilat Land Deal for 25 LNG Newbuilds

An aerial view of Doha, Qatar
Updated Published

Qatari gas shipping giant Nakilat has been chosen by QatarEnergy to possess and operate as many as 25 vessels as part of Qatar's second phase of an extensive LNG shipbuilding initiative.

Based in Doha, Nakilat will acquire 174,000 cubic meter units scheduled for construction in South Korea and lease them to QatarEnergy affiliates.

Qatar's monumental LNG shipbuilding initiative stands as the largest endeavor of its kind in the history of the industry. The initial phase witnessed multiple selected owners engaging in contracts for 60 ships at shipyards in Korea and China, supported by long-term charters with QatarEnergy.

The second phase commenced in September last year with a South Korean deal valued at nearly $4 billion with HD Hyundai Heavy Industries for 17 LNG carriers. This momentum continued with Samsung Heavy Industries recently securing a $3.45 billion order for 15 ships.

The agreement with Nakilat, currently boasting 69 LNG carriers on the seas, represents QatarEnergy's inaugural award in the second wave of long-term charters, with more expected to ensue.

Hanwha Ocean, another Korean shipyard, is poised to solidify its pact with QatarEnergy for 174,000 cubic meter newbuilds, all earmarked to bolster Qatar's LNG expansion initiatives and fleet modernization requirements. Additionally, the state-run LNG producer recently inked a deal with China's Hudong-Zhonghua Shipbuilding for eight Q-Max vessels with a record-breaking capacity of 271,000 cubic meters—the largest units ever ordered in this domain.