Qatargas, RasGas Conduct Split Delivery

Qatargas said August 20 that it and RasGas successfully completed their first co-loading of LNG for split delivery. "This innovative method of multi-port delivery of a single LNG cargo from two separate suppliers represents a new level of operational flexibility and supply chain efficiency in the LNG industry," said Qatargas. 

QP chief executive Saad Sherida Al-Kaabi said it "underscores our commitment to sustaining Qatar’s position as the world’s premier LNG supplier.”

However as Qatar Petroleum (QP) is majority-owner of both LNG exporters and fellow state-owned shipowner Nakilat transports both exporters' cargoes, it's surprising that it has taken 18 years to do this. RasGas and Qatargas shipped their first cargoes in 1999 and 1996 respectively. 

It's already common practice globally for any one trader to split delivery of a cargo between two or more destinations, if so requested.

In its statement, Qatargas said it and RasGas co-loaded the Q-Flex LNG vessel, Al Khuwair July 13 (see graphic below), with most of the cargo being delivered to Zeebrugge in Belgium (a RasGas market) and the remainder to the South Hook LNG Terminal at Milford Haven in the UK (a Qatargas market). Deliveries were effected earlier this month.

QP is having to rethink ways of improving its offer to markets, given increasing competition from US and Australian LNG exporters. Nakilat last month said it would consider investing in FSRUs as a new means of widening its LNG delivery options to developing markets; for a decade it has maximised the size of its LNG supertankers, whereas the new demand sector for LNG ships globally is for mid-sized ones that can transit the Panama Canal. More significantly QP's Al-Kaabi announced early July that Qatar is planning a 30% increase in its LNG export capacity to 100mn mt/yr within 7 years.

Map credit: Qatargas

Mark Smedley