Teekay’s second MEGI LNG newbuild starts work with Cheniere

By Vessels

Teekay’s second LNG carrier to be equipped with dual fuel MEGI engines has commenced its five-year charter with US-based LNG export player Cheniere.

The M-type, electronically controlled, gas injection (MEGI)-powered LNG tanker named Oak Spirit started the fee-based charter with Cheniere on August 1, Teekay LNG Partners said in its second-quarter results report on Thursday.

“The vessel is expected to earn annual cash flow from vessel operations and distributable cash flow of approximately $25 million and $15 million, respectively,” Teekay LNG said.

Teekay’s second MEGI LNG newbuild starts work with Cheniere

LNG carrier Oak Spirit - Image courtesy of Teekay LNG

The 173,000-cbm Oak Spirit is Teekay’s second of nine LNG vessels with MEGI engines to be built at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in South Korea.

Teekay’s first MEGI LNG carrier Creole Spirit was delivered earlier this year and started shipping LNG under a five-year contract from Cheniere’s Sabine Pass liquefaction and export plant in Louisiana.

Delivery date of uncommitted MEGI LNG carrier

Teekay LNG said in the report it has in July reached an agreement with DSME that allows the shipping company to elect to defer delivery of its unchartered MEGI LNG carrier, Torben Spirit.

The vessel’s original delivery date of February 2017 could be pushed back to December 2017.

Teekay LNG is currently pursuing employment opportunities for this vessel and will decide in late-2016 on whether to defer the delivery, the company said.

Source: LNG World News