Qatar Shipping Company (Q Ship) has reported big strides in the business of LNG transportation with firm participation secured in investments in six vessels, all of which will be delivered between May 2004 and first-half 2005.

In three of the vessels - two in joint ventures with Mitsui/Exmar and one in a partnership with Maersk -  Q Ship will hold a 25 per cent stake. All three are slated for a 25-year charter with RasGas II.

The company also has a 20 per cent stake in a vessel in consortium with Mitsui for a 25-year charter to QatarGas and in two others in consortium with MOL/SCI for charter to Petronet India.

The company said it was in negotiations to develop an independent LNG ship management capability involving transfer of technology. The move would ensure that Q Ship evolved as an integrated LNG shipping company.
Q Ship met the funds requirement of QR500 million ($137.3 million) for equity participation in the LNG transportation ventures through a rights issue of shares in the ratio of one share for every two shares held.

“LNG transportation is fast emerging as a lifeline to the energy business. This is an exciting business opportunity and over the past two years Q Ship has evolved from a regional shipowner in Qatar to one of the largest LNG transportation enterprises in the world,” said Q Ship general manager Nasser Saeed Al Romaihi.

The company also successfully accomplished expansion of its harbour towage with fully owned newly built tugs. The company secured another 10-year contract from Qatar Petroleum (QP) for providing one tanker-berthing tug for the offshore terminal at Halul.
Meanwhile, two crude carriers built in 1999 in partnership with Exxon Mobil contributed QR2.4 million to Q Ship’s revenues, Q Ship said. 

Halul Offshore Services Company, a 50:50 joint venture between Q Ship and Qatar National Navigation and Transport Company (QNNTC), Qatar’s largest offshore support services fleet, added QR20.3 million to its profits.

This partnership has 10-year contracts to operate newly built vessels: four anchor-handling tugs and supply vessels, three stand-by safety vessels, one wireline support vessel, one wellhead maintenance vessel and one crew boat. Additionally, it has a five-year contract to provide dynamic position diving support vessels and other sub-sea support services.

Q Ship, with a view to expanding its business in the field of LNG and offshore/onshore construction maintenance-related work, has created a technology and engineering base at Qatar by incorporating a 51 per cent subsidiary company. Named the Qatar Engineering and Technology Company, it is engaged in providing long-term on-shore operations and management services to its clients such as Qatar Chemical Company (Q-Chem).
The company signed a shipbuilding contract with STX Shipyard, South Korea, for delivery of two vessels. One of them, an ammonia/LPG vessel, will be delivered in May 2004 for long-term charter to Qatar Fertiliser Company while another vessel destined for use in the spot market will be delivered at the end of 2004.

Q Ship took delivery of three 37,000dwt product and chemical tankers earlier this year.
 The company reported a net income for 2002 of QR80.86 million against QR103.1 million in the previous year. “Political and economic uncertainty in the early part of 2002 led to disappointing results for the first three quarters of the year and the market fell to levels well below expectations, especially for older tonnage,” said Al Romaihi.

“With the exception of the Danat Qatar and Hassbat Qatar, where age is becoming an increasing factor, all vessels operated above expectations in terms of idle and repair time.”
During 2002, Q Ship owned and operated a deep-sea fleet comprising seven vessels with an aggregate tonnage of 711,053dwt. These included four crude oil tankers, one clean petroleum product tanker and two OBOs.

Vessels controlled by the company performed a total of 130 voyages for a total of 9.8 million tonnes, up 8.7 per cent over 2001. These included three vessels on voyage charter - one for QP and two for Qatar Steel Company.