29 July 14

Teekay LNG secures Yamal contract

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Through a joint venture with China LNG Shipping, Teekay LNG is to build six 172,000m³ ARC7 LNG carriers for the Yamal LNG project.

The vessels, which will be built by South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME) for a total fully built-up cost of around US$2.1bn, will be constructed with maximum 2.1m icebreaking capabilities in both the forward and reverse direction.

“These six newbuildings will both increase and extend the average duration of Teekay LNG’s existing fixed-rate contact portfolio, providing further long-term stability for the partnership’s cash flows,” explained Peter Evensen, CEO, Teekay GP LLC.

“These vessels also add to Teekay LNG‘s existing 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 to BG Group,” he added.

“We are pleased to finalise this previously announced accretive transaction, which solidifies Teekay LNG’s role in Yamal LNG, a strategic international energy project sponsored by Novatek, Total and CNPC, and further expands our partnership with China LNG,” Mr Evensen concluded.

Yamal LNG, a joint venture between Russia’s Novatek, France’s Total and China National Petroleum Corporation, will consists of three LNG trains. It will have a total expected capacity of 16.5 million tonnes of LNG per annum and is scheduled to start-up in early 2018.

Source: www.greenport.com