For the Yamal LNG Project located on the Yaman Peninsula, Northern Russia
Teekay LNG Partners L.P.through a new 50/50 joint venture withChina LNG Shipping (Holdings) Limited(China LNG) announced that it has finalized shipbuilding contracts for six internationally-flagged icebreaker liquefied natural gas (LNG) carriers for theYamal LNG Project, which is located on theYamal PeninsulainNorthern Russia.
Under the agreements, the joint venture betweenTeekay LNGandChina LNGwill build six 172,000 cubic meter ARC7 LNG carrier newbuildings to be constructed byDaewoo Shipbuilding & Marine Engineering Co., Ltd., ofSouth Korea, for a total fully built-up cost of approximately$2.1 billion. The vessels will be constructed with maximum 2.1 meter icebreaking capabilities in both the forward and reverse direction.
Yamal LNG, a joint venture betweenRussia-basedNovatek(60 percent),France-based Total (20 percent) andChina-basedChina National Petroleum Corporation(CNPC) (20 percent), will consist of three LNG trains with a total expected capacity of 16.5 million metric tons of LNG per annum and is currently scheduled to start-up in early-2018.
“We are pleased to finalize this previously announced accretive transaction, which solidifiesTeekay LNG’srole in Yamal LNG, a strategic international energy project sponsored byNovatek, Total and CNPC, and further expands our partnership withChina LNG,” commentedPeter Evensen, Chief Executive Officer ofTeekay GP LLC.
“These six newbuildings will both increase and extend the average duration ofTeekay LNG’sexisting fixed-rate contact portfolio, providing further long-term stability for the Partnership’s cash flows. These vessels also add toTeekay LNG’sexisting pipeline of growth projects scheduled to deliver between now and 2020, which includes our five MEGI LNG carrier newbuildings, 10 LPG carrier newbuildings ordered through our Exmar LPG joint venture, and our ownership interest in four LNG carrier newbuildings that will be chartered toBG Group.”
The signing by the owner of the remaining newbuilding carriers required for theYamal LNG Projectwill take place inRussia.
Source: Teekay LNG Partners LP