Doha hosts major shipping conference

It is therefore not surprising that Doha was the launch venue for the 1st International Middle East LNG Shipping Forum this week.

Top Qatari officials used this occasion to call on the global finance industry to get its act together on LNG finance, as there is a feeling that this great business opportunity is not being taken seriously enough in more conservative banking circles.

'Financial institutions should do more to recognize the good fundamentals of LNG projects in terms of ship financing,' said Second Deputy Prime Minister Abdullah bin Hamad Al Attiyah who is also Minister of Energy and chairman of Qatar Petroleum.

He contrasted the cyclical nature of the shipping industry with the much more stable characteristics of shipping LNG.

'LNG will generate a stable and reasonably attractive return without being subject to the same degree of commercial risk and the volatility of the shipping industry,'

Qatar Petroleum hosted the two-day forum in Doha this week which attracted senior executives from across the growing LNG industry. Qatar is well ahead of many nations in its development of LNG and is on target to be the largest exporter in the world early in the next decade.

'For LNG shipping still remains the most important element in the cost structure,' Mr. Al Attiyah reminded delegates, noting that this was particularly true 'when moving LNG to remote markets of the Atlantic Basin and Far East.'

He also pointed to the recent flotation of the Nakilat or Qatari Gas Transport Company as an indication that the Qatar was ready to play an active role in innovative finance for LNG tankers.

'Public participation will facilitate raising financing by accessing new sources of liquidity and encouraging involvement of the local and regional financial institutions, including Islamic financing houses.'

Mr. Al Attiyah said this was a part of a multifaceted approach to LNG tanker finance, and that 'we must continue to seek solutions aiming at reducing LNG transportation costs.'