Qatar's Nakilat to Order LNG Vessels

According to reports, Qatargas Transport Company (Nakilat) is expected to order a further 9 to 11 LNG vessels for RasGas-3 and Qatargas-4 this year. At the beginning, Nakilat activities were primarily focused on securing partial ownership of between 30 and 60 percent of the original 29 LNG vessels ordered. This was equal to approximately 54 per cent ownership of the first tranche of ships. This change in strategy, he said, required Nakilat to fund the additional construction costs of these 100 percent owned ships in order to meet the Qatargas and RasGas ship delivery schedules. In order to meet its payment obligations to the Korean shipbuilding yards Nakilat is obligated to cash call the remaining equity contribution from its shareholders this year. This obligation is in accordance with the information provided to the shareholders at the time of the initial public offer (IPO), adding that a reference in the Annual Report for 2005 clearly states that the remaining 50 percent would be requested in 2007.