Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP) today announced that it has entered into a 15-year time-charter contract with the Yamal LNG project (Yamal LNG), sponsored by Novatek OAO, Total SA, China National Petroleum Corporation and Silk Road Fund, to provide Yamal LNG with conventional Liquefied Natural Gas (LNG) transportation services. Yamal LNG is currently scheduled to commence production in 2017.
Oak Spirit - World’s Second MEGI-Type LNG Carrier - Image courtesy: Teekay
The fixed-rate time-charter contract will be serviced by one of Teekay LNG's previously unchartered 174,000 cubic meter MEGI LNG carrier newbuildings that is scheduled for delivery in early-2019.
"We are pleased that our commercial team has secured this new 15-year charter contract which expands our service offering to the now fully-financed Yamal LNG project and reduces our uncommitted newbuildings to only one vessel," commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. "The Partnership will now provide this strategically-important project with both icebreaker and conventional LNG transportation services. In addition, the new contract further builds on the Partnership's diversified contract portfolio, providing additional long-term stability to the Partnership's cash flows."
Teekay LNG Partners is one of the world's largest independent owners and operators of LNG carriers, providing LNG, LPG and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts through its interests in 50 LNG carriers (including one LNG regasification unit and 19 newbuildings), 29 LPG/Multigas carriers (including three in-chartered LPG carriers and five newbuildings) and six conventional tankers. The Partnership's interests in these vessels range from 20 to 100 percent. Teekay LNG Partners L.P. is a publicly-traded master limited partnership (MLP) formed by Teekay Corporation (NYSE:TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors.
Teekay LNG Partners' common units trade on the New York Stock Exchange under the symbol "TGP".