Qatar, McDermott Ready for LNG Boost

Qatari shipbuilder Nakilat and US engineers McDermott are to form a joint venture (JV) to provide offshore and onshore fabrication services in Qatar, Nakilat said February 18.

Qatar is planning to increase its liquefied natural gas production from 77mn metric tons/yr to 110mn mt/yr in the coming years. This will mean building, maintaining and reburbishing offshore and onshore structures and all types of vessels. Nakilat operates the fleet of Q-Flex and Q-Max tankers, the largest LNG tankers in existence.

The aim is to boost productivity at Nakilat’s world-class Erhama Bin Jaber Al Jalahma Shipyard and developing local construction capabilities to support the increasing demand for the construction of offshore and onshore structures in Qatar.

The JV is aligned with Qatar’s new programme to "enhance the resilience of the energy sector’s supply chain. In addition, the program aims at creating new investment opportunities within the energy sector, which will significantly contribute to Qatar’s economy," Nakilat said.

The JV will be able to leverage on McDermott’s renowned expertise in the field of onshore and offshore construction and Nakilat’s wealth of experience in providing fabrication services to Qatar’s oil and gas industry.

Profits up 

Nakilat made a profit of QR 892mn ($245mn) in 2018, up 5.3% on the year before, or by 14% after excluding a 2017 one-off item. It said it achieved positive results across its operations that exceeded planned expectations through enhanced operational efficiency and cost effectiveness.

Over the year Nakilat expanded its fleet with the addition of two liquefied natural gas (LNG) carriers and bought a 55% stake in its first floating storage regasification unit (FSRU), the Excelerate-owned Exquisite, to service its Pakistan LNG sales contract. Nakilat said the "strategic acquisition paved the way for Nakilat to widen its international footprint and take its first step into a new business segment." Its shipyard also carries out maintenance work on LPG, crude and other tankers and in January it began overhauling and upgrading an FSRU for Exelerate, before it goes to service a Bangladesh LNG delivery contract.