Nakilat is set to become the largest owner of liquefied natural gas (LNG) carriers in the world following a $1.5 billion (Dh5.5bn) financing exercise.

The Marshall Islands-based company, which is wholly owned by the Qatar Gas Transport Company, has raised the money from the financial markets to fund the construction of 25 LNG tankers. The fund-raising is part of $2.5bn of additional debt that Nakilat intends to raise over the coming 18 months.

The company reported net profits of QR90.37 million (Dh91.2m) in the first half of this year.

Nakilat has ordered 54 tankers to cope with growing global demand for LNG – gas chilled to its liquid state for easier shipping.

The debt includes a 17-year $925m senior bank facility, a 17-year $125m subordinated bank loan and a 12-year $450 million senior bank facility insured by the Korea Export Insurance Corporation (KEIC).

Qatar, holder of the world's third largest natural gas reserves, plans to more than double its LNG capacity to 77 million tonnes in 2010 from 30 million tonnes last year.

"We look forward to closing the remaining financing for the additional debt programme and will continue to strive to identify additional high-yield investment opportunities to maximise returns to our shareholders," said Managing Director Mohamed Ghannam.

The $1.5bn funding was raised from a group of 12 international and regional banks and KEIC, a Nakilat spokesman said in a statement to the Doha Securities Market. Sumitomi Mitsui Banking Corporation served as overall financial adviser while Latham and Watkins advised Nakilat on commercial and legal matters and Skadden, Arps, Slate, Meagher and Flom advised the lending group.

"The debt financing once again proves Nakilat's prime status in today's financial market and investors appreciate the strength of Nakilat in a challenging market," said Ghannam.

The 25 ships will be chartered for 25 years to Qatargas 2, Qatargas 3, RasGas 3 and Qatargas 4 projects.


The number

$1.5bn: The money raised by Nakilat to fund the construction of 25 LNG tankers out of the 54 it has ordered to cope with demand