Subsidiaries of Teekay LNG Partners L.P. and a wholly owned company of Royal Dutch Shell plc (Shell) announced that they have entered into time-charter contracts for five newbuild LNG carriers.
The vessels will operate as part of Shell’s global LNG fleet under time-charters ranging in duration from six to eight years, plus extension options. Delivery of the vessels will start from the second half of 2017 into 2018.
The new time-charter contracts with Shell will be serviced by five 173,400 cubic meter MEGI (M-type, Electronically Controlled, Gas Injection) engine LNG newbuildings built by Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea.
MEGI engines will be significantly more fuel-efficient and have lower emission levels than engines currently used in LNG shipping.
Dr. Grahaeme Henderson, Vice President of Shell Shipping & Maritime, commented:
“We are pleased to have signed this deal with a leading company like Teekay LNG, further strengthening our relationship with them. The new tonnage will give Shell’s upstream and trading operations added flexibility in taking gas to market. We look forward to welcoming these cutting-edge MEGI engine vessels into our LNG fleet which is one of the largest and most technically advanced in the world.”
Mr. Peter Evensen, Chief Executive Officer of Teekay GP LLC said:
“This accretive transaction both builds on our strong existing relationship with Shell and represents another milestone for the adoption of fuel-efficient MEGI-propelled LNG carriers as Shell will be among the first of the energy majors to bring MEGI vessels into its fleet,”
Source: Teekay LNG Partners L.P.
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