Teekay LNG Signs Time-Charter Contracts for Its Two Existing Newbuildings With Cheniere
HAMILTON, BERMUDA--(Marketwired - June 7, 2013) - Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE: TGP) today announced that it has entered into two, five-year time-charter contracts with Cheniere Marketing, LLC (Cheniere) to provide them with Liquefied Natural Gas (LNG) transportation services.
The fixed-rate time-charter contracts will be serviced by the two 173,400 cubic meter LNG carrier newbuildings ordered by Teekay LNG in December 2012. The newbuildings are currently under construction by Daewoo Shipbuilding & Marine Engineering of South Korea and are scheduled to be delivered in the first half of 2016. The newbuildings will be constructed with M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are designed to be significantly more fuel-efficient and have lower emission levels than other engines currently being used in LNG shipping.
"We are excited to be supporting Cheniere, which will be exporting volumes from the Sabine Pass LNG export facility, the first LNG export facility project in the contiguous United States to receive approval for LNG exports," commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. "This is a pioneering transaction which combines one of the first U.S. LNG export facilities with the first MEGI-propelled LNG carriers to be chartered."
Mr. Evensen continued, "With this transaction, the Partnership is once again able to provide investors with visible distributable cash flow growth that we expect to build on due to the strong fundamentals of the LNG transportation markets we see developing commencing from 2016. The Partnership is also bidding on several other LNG and floating regasification projects."
About Teekay LNG
Teekay LNG Partners is the world's third largest independent owner and operator of LNG carriers, providing LNG, LPG and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts with major energy and utility companies through its interests in 29 LNG carriers (including one LNG regasification unit and two newbuildings), 29 LPG/Multigas carriers (including five chartered-in LPG carriers and eight newbuildings) and 11 conventional tankers. The Partnership's interests in these vessels range from 33 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".
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the expected timing for delivery of the Partnership's two LNG carrier newbuildings from the shipyard and commencement of their respective time-charter contracts; the higher fuel-efficiency and lower emissions levels associated with the MEGI engines; the impact on the Partnership's future distributable cash flow; the expected commencement of Cheniere's Sabine Pass LNG export facility; the anticipated increase in demand for LNG shipping commencing from 2016 due to new LNG export projects; and the Partnership's ability to successfully bid for new LNG shipping and floating regasification projects. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: greater than expected vessel construction costs related to the two LNG carrier newbuildings; changes to vessel delivery dates as a result of shipyard delays; greater than expected increases in operating expenses; potential early termination of contracts; failure of the MEGI engine to provide the expected efficiency and emission specifications; failure by the Partnership to secure financing prior to the delivery for the two LNG carrier newbuildings; changes in production of LNG, either generally or in particular regions that would impact the expected future growth in the global LNG transportation and regasification markets, and spot LNG shipping rates; changes in trading patterns or timing of the start-up of new LNG liquefaction projects, including Cheniere's Sabine Pass LNG export facility project, significantly impacting overall LNG shipping requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; and other factors discussed in Teekay LNG Partners' filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2012. The Partnership expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
Teekay LNG Partners L.P.
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Source: Teekay LNG Partners L.P. via Thomson Reuters ONE