Teekay LNG Partners secures long-term financing for Yamal Arc7 LNG carriers

By Finance

Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP) today announced the completion of an $816 million(1) long-term debt facility to finance all six of the Partnership’s 50-percent owned ARC7 LNG carrier newbuildings, the first vessel of which is scheduled to deliver in January 2018, and the remaining vessels through to early-2020.  These newbuildings will service the Yamal LNG project under charter contracts with firm charter periods out to 2045 plus option periods.

Teekay LNG Partners secures long-term financing for Yamal Arc7 LNG carriers
Caption: Teekay LNG Partners‘ first icebreaker LNG newbuilding, Eduard Toll, recently completed gas trials - Image courtesy of Teekay

“Together with our joint venture partner, China LNG Shipping, we are pleased to announce this significant project milestone for our ARC7 LNG carrier newbuildings for the Yamal LNG project, which has successfully commenced producing LNG at the first train and recently completed its first LNG cargo loading,” commented Brody Speers, Chief Financial Officer of Teekay Gas Group Ltd.

“With the long-term financing for all six of our 50-percent owned ARC7 vessels now in place, we look forward to the expected delivery and charter contract commencement of our first ARC7 LNG carrier newbuilding in January 2018.  With the completion of this ARC7 financing, the Partnership has now completed $2.2 billion in debt financings for our newbuildings in the past 12 months and has financed 14 of its remaining 15 LNG carrier newbuildings, which includes one floating storage unit.”

(1) Based on the Partnership’s 50-percent ownership interests in the six ARC7 LNG carriers.

Source: Teekay