174,000 cubic meter Tri-Fuel Diesel Electric LNG carrier newbuildings
Teekay LNG Partners L.P.announced that it has acquired fromBG Group(BG) ownership interests in four 174,000 cubic meterTri-Fuel Diesel Electric(TFDE) liquefied natural gas (LNG) carrier newbuildings, which will be constructed byHudong-Zhonghua Shipbuilding (Group) Co., Ltd.inChina.
The vessels, which are scheduled to deliver betweenSeptember 2017andJanuary 2019, will each operate under 20-year time-charter contracts, plus extension options, withMethane Services Limited, a wholly-owned subsidiary of BG.
Through this transaction, the Partnership has acquired a 30 percent ownership interest in the first two LNG carrier newbuildings with the balance of ownership held by CETS (an affiliate ofChina National Offshore Oil Corporation(CNOOC)) andChina LNG Shipping (Holdings) Limited(CLNG), and a 20 percent ownership interest in the second two LNG carrier newbuildings with the balance of ownership held by CETS,CLNG and BW Group.
Teekay Corporationwill provide construction supervision services for the newbuildings and technical management of the vessels 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$800 millionlong-term debt facility secured by the vessels.
“We are pleased to announce this accretive acquisition, which adds liquefied gas to theTeekay Group’sstrategic relationship withBG Groupwhile also establishing new relationships withChina-based partners,” commentedPeter Evensen, Chief Executive Officer ofTeekay GP LLC.
“The long-term time-charter contracts for the four newbuildings, which complement and expandTeekay LNG’sexisting fixed-rate contact portfolio, will provide further stability for the Partnership’s cash flows. These vessels also further strengthenTeekay LNG’sexisting 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.”
Source: Teekay LNG Partners
