Qatar Gas Transport Company Ltd. (known as “Nakilat”, which means carriers in Arabic) is a Qatari-listed shipping company established by the State of Qatar to own, operate and manage LNG vessels and to provide shipping and marine-related services to a range of participants within the Qatari hydrocarbon sector. Nakilat is an integral component of the supply chain of some of the largest, most advanced energy projects in the world undertaken by Qatar Petroleum, Qatargas, Rasgas and their joint venture partners for the State of Qatar.

Nakilat was established in 2004 and is a joint stock company owned 50% by its founding shareholders and 50% by the public. It is building a large fleet of vessels to transport LNG produced from Qatar’s North Field, the world’s largest non-associated gas field with approximately 15% of the world’s total proven reserves to global markets.

By 2010, Nakilat will own 54 LNG vessels, making it one of the largest LNG ship owners in the world.

Throughout 2007, Nakilat continued the development and building of our important partnerships with our key joint venture companies which together will own and operate 29 liquefied natural gas (LNG) carriers, ranging in capacity from 145,000m³ to 216,000m³. Nakilat’s ownership percentage of these partnership vessels range between 20% and 60% and average 43% interest. As of the end of September 2008, 28 of these vessels had been delivered; the last vessel will be delivered in 2009.

In addition to the 29 jointly owned vessels Nakilat has 25 wholly-owned LNG carriers. All of these ships, ordered from Korean shipyards, incorporate the latest technology for safe, reliable and cost-effective transportation of LNG over many years, and are the result of several years of engineering design work and testing. They are scheduled for delivery between 2008 and 2010, and represent a total investment by Nakilat of approximately US $7.5 billion.

In total, the Nakilat fleet will include 54 LNG carriers comprised of 9 Conventional vessels (145m³), 31 Q-Flex vessels (210-216m³) and 14 Q-Max vessels (263-266m³). The Q-Flex has approximately 50% more capacity than conventional LNG carriers and the larger Q-Max will have over 80% more capacity. They are the world’s largest LNG vessels built to date.

Together, Nakilat’s jointly and wholly-owned fleet of 54 vessels represent approximately $11 billion.

The following are some of the notable achievements realized by Nakilat in 2007.

• February 2007: Nakilat was awarded eight 25-year time charters by Qatargas and signed contracts with Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries for the construction of 4 Q-Max and 4 Q-Flex LNG carriers. These vessels, once delivered from the shipyards in 2009 – 2010, will be dedicated to the carriage of LNG for the Qatargas 4 project.



• March 2007: Nakilat signed an agreement with KS Investments Ltd., a wholly-owned subsidiary of Keppel Offshore & Marine to jointly develop a world-class ship repair facility in the Port of Ras Laffan, Qatar. The new shipyard will become a centre of excellence for the repair and maintenance of LNG carriers, thereby securing a strategically important link in Qatar’s supply chain of natural gas from wellhead to consumer.



• April 2007: The Steel Cutting Ceremony was held for the first Q-Max vessel being built at Samsung Heavy Industries in Korea. This vessel is the first 100% wholly-owned carrier for Nakilat and marked the start of the construction of what will be the largest LNG carriers ever built.



• July 2007: Nakilat and Shell International Trading and Shipping Company Limited (STASCO) formalized the November 2006 execution of the Master Services Agreement, in which Shell was appointed as the shipping and maritime services provider for Nakilat’s LNG fleet. Under the terms of the agreement Shell will provide a full range of shipping services for Nakilat including sea staff recruitment, training and operational management of the wholly-owned vessels. A key element of the agreement is the commitment to develop Nakilat’s shipping expertise; the intention is for operational management of the ships to be transferred to Nakilat within 8-12 years.



• September 2007: Nakilat celebrates the naming of 4 Q-Flex ships at the Korean shipyards. Al Ruwais and Al Safliya at Daewoo Shipbuilding and Marine Engineering Ltd., Al Gattara at Hyundai Heavy Industries Co. and the Tembek at Samsung Heavy Industries Co. Ltd.



• November 2007: Nakilat launches the first of its 14 Q-Max vessels being built in Korea. The vessel was safely floated out of the dry-dock to continue further outfitting work at the Samsung Heavy Industries yard. The vessel will be the largest LNG carrier in the world when completed, with a cargo capacity of up to 266,000m³. Nakilat names 4 additional Q-Flex ships. Al Hamla at Samsung Heavy Industries, Al Gharrafa at Hyundai Heavy Industries and the Duhail and Al Ghariya at Daewoo Shipbuilding and Marine Engineering Ltd.



• December 2007: Nakilat celebrates the arrival and loading of the first Q-Flex vessel – Al Gattara – to the Port of Ras Laffan. Once loaded, the vessel set sail immediately for Japan to deliver the first Q-Flex cargo to Tohoku Electric Power Company’s Higashi Niigata terminal in northern Japan. The vessel completed her maiden cargo voyage without incident and arrived on time.



• December 2007: The main contractor was appointed for construction of the dry docks, piers, and other major structures for the Nakilat ship repair yard at Ras Laffan.

Nakilat and Qatar Shipping Company (QShip) are finalizing a Joint Venture Agreement to establish a special purpose company, which will be responsible for the construction, ownership and operation of four very large Liquid Petroleum Gas (LPG) Carriers. Nakilat and QShip each have 50% share in the four ships currently being built in Hyundai Heavy Industries, Korea. The vessels, registered with Qatar State Flag, will be delivered between April 2008 and March 2009.

The Nakilat Ship Repair Yard Project is progressing well and on schedule. In 2007, Nakilat and Qatar Petroleum finalized the definition of the five-phase strategy to develop facilities for the construction and maintenance of a wide range of marine and offshore structures. The ship repair yard is “purpose built” for the repair and maintenance of very large LNG carriers and a wide range of other vessels, as well as the conversion of tankers to Floating Production, Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO) units. The 42-hectare shipyard, built on reclaimed land, will be part of the massive expansion of the Port of Ras Laffan and is expected to begin operations in 2010.

The Nakilat Agency Company (NAC) acts as the exclusive “full port agency service” for all local and international ships calling at the Port of Ras Laffan. The agency participated with a major contractor in recently achieving the milestone of moving 2 million tons of cargo without a lost time accident.

Nakilat Fuji provides the complete range of ships chandler supply and services ranging from the provision of crew’s stores, food and beverages to maintenance supplies, spare parts, equipment and warehousing services.

Nakilat Svitzerwijsmuller, a joint venture between Nakilat and Svitzer Middle East, owns and operates tug boats, pilot boats and other harbor craft at the port of Ras Laffan. This equipment is deployed under a 22-year Harbour Towage and Mooring services contract which was awarded in 2006.

Nakilat’s senior debt received very high investment-grade ratings from the international rating agencies: Standard & Poor reaffirmed Nakilat’s strong credit rating. The 'A+' long-term senior secured debt rating on the $850 million series A bonds and the 'A' long-term subordinated secured debt rating on the $300 million second-priority series A bonds, both due 2033, issued by Nakilat Inc., reflect a composite of credit factors. The long-term corporate credit rating on Nakilat is 'A+', with a stable outlook.

Nakilat is well placed financially, operationally and managerially to meet its planned strategic targets and to seize new opportunities. In a few short years Qatar will produce 30% of the global LNG supply and Nakilat will deliver Qatar’s energy to the world in a safe and reliable manner.

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