Regional LNG: Japan consortium inks LNG carrier charter deal with Qatar firm

A consortium of three Japanese shipping firms and a trading house said Thursday it has signed a long-term charter deal with a Qatari liquefied natural gas producer to transport LNG, Kyodo News reported.

The 25-year deal was signed by Peninsula LNG Transport No. 4 Ltd., a joint company set up by the four companies -- Mitsui O.S.K. Lines Ltd., Nippon Yusen Kabushiki Kaisha Ltd., Kawasaki Kisen Kaisha Ltd., and trading house Mitsui & Co. -- and Qatar's Ras Laffan Liquefied Natural Gas Co. 2 (RasGas 2).

RasGas 2, which owns LNG production facilities in Qatar, will charter a new 145,000 cubic meter LNG carrier to transport the gas it taps for sale to European markets.

In a related development, the consortium said Peninsula LNG Transport No. 4 has signed a contract with Samsung Heavy Industries Co. of South Korea to build the LNG carrier.

The ship, which will feature a "membrane cargo containment system," is scheduled for delivery in January 2007. The Qatari firm will arrange for Nippon Yusen to manage the carrier by paying a ship-managing fee.

RasGas 2, owned 70 percent by Qatar Petroleum, a state-run Qatari oil producer, and 30 percent by Exxon Mobil Corp. of the United States, was set up to boost LNG production capability to 15 million tons a year for export to Indian and European markets. (*)