Qatar Navigation (Milaha) has struck an agreement to increase its stake in Qatar’s Nakilat.
Milaha reported on 6 February that its subsidiary, Qatar Shipping Company, has inked a deal to acquire Qatar Investment Authority’s share in Nakilat, representing 5.9% of the LNG shipping giant’s share capital.
The sales and purchase agreement is contingent upon obtaining the consent of the Qatar Financial Markets Authority and the Qatar Central Securities Depository Company.
Milaha Group president and chief executive Abdulrahman Essa Al-Mannai said Milaha holds, directly and indirectly, a 30.3% stake in the share capital of Nakilat. If the agreement is approved Milaha will control shares totaling approximately 36.3% of Nakilat’s share capital.
According to Mr Al-Mannai, Milaha is a founder and major shareholder of Nakilat, and he added that the increase of Milaha’s stake in Nakilat “stems from Nakilat’s success and Milaha’s belief in the vital field of gas transportation.”
State-owned Nakilat is a vital transportation link in Qatar’s LNG supply chain. It operates the largest global LNG shipping fleet, comprising 65 LNGCs, including 20 conventional carriers with capacities up to 170,000 m3, 31 Q-Flex vessels up to 217,000 m3 capacity and 14 Q-Max vessels 266,000 m3 capacity. It also owns the FSRU Exquisite and four LPG VLGCs, with the latter operated by its inhouse ship management arm, Nakilat Shipping Qatar Limited.
Beyond its core shipping activities, Nakilat also operates the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial City through two strategic joint ventures (JV). Nakilat-Keppel Offshore & Marine is a JV with Singapore’s Keppel Offshore & Marine. The other is Nakilat Damen Shipyards Qatar, a JV between Nakilat and Damen Shipyards Qatar Holding, a wholly owned subsidiary of the Netherlands’ Damen Shipyards Group.