Greater China

Teekay acquires ownership interest in four LNG carriers

Shanghai: Teekay LNG Partners announced that it has acquired ownership interest from BG Group in four 174,000 cu m LNG carrier newbuildings, which will be constructed by Hudong-Zhonghua Shipbuilding in China. The vessels, which are scheduled to deliver between September 2017 and January 2019, will each operate under 20-year time-charter contracts with extension options, with Methane Services Limited, a wholly-owned subsidiary of BG.

Through this transaction, Teekay LNG Partners has acquired a 30% ownership interest in the first two LNG carriers with the balance of ownership held by CETS, an affiliate company of CNOOC and China LNG Shipping Holdings Limited (CLNG), and a 20% ownership interest in the second two LNG carriers with the balance of ownership held by CETS, CLNG and BW Group.

Teekay Corporation will provide construction supervision services for the newbuildings and technical management of the vessels upon their respective deliveries.

"The long-term time-charter contracts for the four newbuildings, which complement and expand Teekay LNG's existing fixed-rate contact portfolio, will provide further stability for the Partnership's cash flows. These vessels also further strengthen Teekay LNG's existing pipeline of growth projects scheduled to deliver between 2014 and 2018, which includes 10 LPG carrier newbuildings, through our Exmar LPG joint venture, and five MEGI LNG carrier newbuildings,” commented Peter Evensen, ceo of Teekay Corporation. [08/07/14]

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