
Nine Questions for Nakilat’s Abdullah Al Sulaiti, Managing Director of the World’s Largest LNG Shipping Fleet
With a fleet of 63 state-of-the-art LNG carriers, together with 14 of the world’s largest Q-Max vessels, Qatar Gas Transport Company Ltd, aka Nakilat, is likely one of the largest LNG delivery corporations on the earth. The firm was established in 2004 by the State of Qatar with the intention to personal, function and handle a fleet of LNG carriers used to transport Qatari-produced pure fuel to world markets. Qatar, a small peninsula of about 5,000 sq. miles that juts out into the Persian Gulf from the Arabian Peninsula, is the world’s second greatest exporter of pure fuel behind Russia, with 120 billion cubic meters exported in 2012.
To get a way of their operations, we had a number of questions for Abdullah Al Sulaiti, Nakilat’s Managing Director.
1. GC: Can you present us with an summary of your present operations?
Nakilat owns into 61 LNG vessels. We personal 100% of 25 of our vessels, (all 14 QMax and 11 QFlex) and the others are 43% owned on combination. Gulf LPG’s 4 very massive LPG carriers are absolutely operated and managed by Nakilat Shipping Qatar Limited (NSQL), a wholly-owned subsidiary of Nakilat. We additionally co-own 4 VLGCs.
Of our 61 LNG vessels, 54 are on long run charters to Qatargas or RasGas whereas the remaining seven are chartered into the worldwide market. Nakilat additionally has a number of joint ventures to assist its enterprise, together with a state-of-the-art ship restore yard N-KOM, in addition to NDSQ; which is liable for shipbuilding and refurbishment of particular vessels as much as 170 meters in size; towage affiliate NSW and company NAC.
Nakilat’s core enterprise of delivery Qatari liquefied pure fuel to world markets is essential to our firm’s power. Our fleet represents one of many world’s latest and largest LNG fleets, with all vessels incorporating state-of-the-art know-how to make sure the protected, environmentally sound and cost-effective transportation of LNG. The ships signify a complete funding of roughly US $12 billion and have a mixed combination carrying capability of almost 9 million cubic meters of LNG cargo area.
Nakilat LNG ships are utilized in assembly the transportation necessities of the State of Qatar’s LNG business, offering the nation and the world with a strategically essential ‘floating pipeline’ of unpolluted power. Nakilat’s LNG vessels are chartered via long-term time constitution agreements with Qatargas and RasGas. Our 25 wholly-owned LNG vessels are operated by way of a strategic alliance with Shell International Trading and Shipping Company Ltd. (STASCO). Nakilat’s 36 (together with two vessels delivered within the first-half 2015) jointly-owned LNG vessels are operated by the vessel’s co-owners, which embody most of the world’s main ship proudly owning and working corporations.
Editor’s word: Since this interview Nakilat has expanded to 63 LNG and 4 LPG ships. The firm has additionally signed an settlement with Maran Gas to increase its three way partnership with them to incorporate two new vessels.
2. GC: Is there room for growth of Nakilat’s fleet going ahead?
Absolutely. Nakilat is an formidable firm, and since our basis in 2004, now we have expanded at a commendable tempo, to the purpose that we are actually one of many largest LNG delivery corporations on the earth. However, a lot of our success so far has been attributed to cautious change administration methods, and as such we don’t rush into issues with out vital advance planning.
3. GC: Floating regas and liquefaction has been a development that has seen a variety of curiosity and development over the previous few years. How has this know-how affected Nakilat’s enterprise?
As a part of our five-year ‘Declared Future’, now we have unambiguously said that that is an space we’re fascinated by growing. We’re intently monitoring the institution of offshore regas and liquefaction initiatives globally, and it’s definitely an space the place we hope to increase and develop sooner or later.
4. GC: Does Nakilat have any ambitions to get into the floating LNG enterprise?
At this level, we aren’t ruling something out. Nakilat’s Fleet and SHE groups continuously discover these prospects, and our administration staff offers broad assist to modern new methods of transporting LNG.
5. GC: Can you give our viewers a normal overview of the LNG delivery market? What are the market forces which can be most in play in the mean time?
It’s not possible to foretell the longer term, however usually talking we see a rising demand for LNG worldwide and thus related delivery. Given the present state of new-build LNG vessels orders, round 163 at the moment, and the historic tendency for brand new LNG manufacturing initiatives to be delayed, we predict that there might be a softening of the near-term LNG vessel spot market, however that the vessel size might be absorbed because it has been up to now. It’s essential to notice that since all of Nakilat’s vessels are on time period charters, we predict our publicity to the near-term market is extraordinarily restricted.
6. GC: What are the 2 greatest hindrances to the expansion of the worldwide LNG delivery market?
We want to see governments worldwide put money into attracting younger individuals to the STEM (science, know-how, engineering, arithmetic) fields. The business usually faces difficulties in attracting the proper calibre of certified and proficient graduates, and strikes to see this remedied may have a vastly constructive affect on the business as a complete.
While our long-term charters stay unaffected by the drop in oil costs not too long ago, rising markets that at the moment depend on oil are, in some instances, turning into extra reluctant to take a look at the infrastructural funding required to develop the LNG sector.
7. GC: Do you see additional consolidation taking place wherever else within the fuel sector?
It’s fairly potential that additional consolidation will come about within the close to future. As the method of globalisation continues, organisations with comparable objectives and complementary ambitions are more likely to search consolidation and partnerships. There’s vital media hypothesis about potential mergers in the mean time, and from Nakilat’s standpoint, all we will say is ‘watch this space’.
8. GC: Will Nakilat’s ships name on U.S. ports to export LNG sooner or later?
We have been concerned within the export of cargo from the US to Europe up to now, and there’s at all times the chance that this may occur once more sooner or later. This relies on business viability, worldwide regulation and a wide range of different components.
We at the moment ship cargoes to 25 nations and 69 LNG receiving terminals around the globe. Countries served embody Japan, Korea, Spain, United Kingdom, France, USA, Canada, Mexico, United Arab Emirates (UAE), India, China, Greece, Italy, Netherlands, Thailand to call just some.
9. GC: If the U.S. required that every one of their home LNG be exported on U.S.-flagged ships, how would possibly you reply to that?
Right now, we don’t really feel the necessity to speculate on the ‘ifs’ and ‘buts’ of the United States’ delivery business. Our staff of skilled specialists would assess the specifics of the scenario and make a calculated enterprise choice if that scenario had been to come up.
Questions by Rob Almeida
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