Teekay LNG Partners has acquired ownership interests in four LNG carrier newbuidlings from BG Group. The 174 000 m3 Tri-Fuel Diesel Electric (TFDE) LNG carriers will be constructed by Hudong-Zhonghua Shipbuilding (Group) Co. Ltd. in China.
The LNG carriers, which are scheduled to deliver between September 2017 and January 2019, will each operate under 20-year time-charter contracts, plus extension options, with Methane Services Ltd, a wholly-owned subsidiary of BG.
Teekay Corp. has acquired a 30% ownership interest in the first two LNG carrier newbuildings with the balance of ownership held by CETS (an affiliate of China National Offshore Oil Corp. (CNOOC)) and China LNG Shipping (Holdings) Ltd (CLNG), and a 20% ownership interest in the second two LNG carrier newbuildings with the balance of ownership held by CETS, CLNG and BW Group.
Teekay Corp. will provide construction supervision services for the LNG carrier newbuildings and technical management of the LNG carriers upon their respective deliveries.
The Partnership will finance its pro rata equity interest in future shipyard installment payments using a portion of its available liquidity with the balance of the total cost of the vessels financed with a new approximately US$ 800 million long-term debt facility secured by the vessels.
Peter Evensen, Chief Executive Officer of Teekay GP LLC, SAID: “We are pleased to announce this accretive acquisition, which adds liquefied gas to the Teekay Group’s strategic relationship with BG Group while also establishing new relationships with China-based partners […] 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."
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/07072014/teekay_acquires_interests_in_lng_carriers_926/