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Nakilat Orders $1B Worth of LNG and LPG Carriers

LNG carrier
File image courtesy Nakilat

Published Jan 9, 2024 8:39 PM by The Maritime Executive

Qatar's LNG transport operator, Nakilat, has reached a deal with Hyundai Heavy Industries for two standard-sized LNG carriers and four very large ammonia/LPG carriers. 

The newbuilds will have the latest in energy-saving devices, according to the shipowner. 

"We are proud of our decades-long relationship with Nakilat and look forward to establishing a closer business link that will enable both parties to take the initiative," said S.Y. Park, President of HD Hyundai. 

The order expands Nakilat's LNG fleet to 71 ships, plus eight LPG carriers. The deliveries will reinforce its position in gas shipping as the largest LNG shipowner. 

Nakilat's shipping capacity complements the business of another state-owned enterprise, QatarEnergy, once the largest exporter of LNG in the world. The state energy company is in the middle of a vast project to boost its export volume. The $30 billion North Field Expansion (NFE) will add six supersized liquefaction trains, taking Qatar's production from 77 million tonnes per annum (mpta) to 126 mpta by 2027. The newbuilds support the company’s expanding LNG production capacity in Qatar, as well as a new Qatari-owned liquefaction plant on the U.S. Gulf Coast. 

Just last year, QatarEnergy ordered 17 more LNG carriers from HD Hyundai for a total of nearly $4 billion. The year before, it concluded deals for 60 newbuilds at yards in Korea and China, including chartered-in vessels that will be owned by third party shipowners and its own construction contracts.  

These technologically-complex vessels are in high demand, and they are a major source of income for Korean shipbuilders: LNG carriers command both a high price and a higher margin when compared with simpler ship classes. d