Teekay CEO: LNG shipping fundamentals remain strong

The long-term fundamentals for LNG shipping remain strong with a high level of demand for new liquefied natural gas carriers through to 2020, Peter Evensen, President and Chief Executive Officer of Teekay said on Wednesday.

“While we expect the recent volatility in global oil prices may result in delays of certain of our customers’ new projects, the long-term fundamentals in the LNG shipping and offshore sector remain strong,” Evensen said at Teekay’s Annual General Meeting reviewing the company’s key developments since June last year.

Teekay LNG, a unit of Teekay, had one of the most successful years since its inception over 10 years ago securing approximately $2.4 billion of new profitable growth projects, Evensen said.

These projects include five fuel-efficient LNG carrier newbuildings to be chartered to Shell; a 50 percent interest in six icebreaker LNG carriers for the Yamal LNG project; and the acquisition of a net 25 percent interest in four LNG carriers from BG Group.

“Teekay LNG has approximately $3.4 billion of committed capital projects delivering between now and 2020 and the partnership continues to bid on new long-term, fixed-rate LNG shipping and floating regasification contracts,” Evensen added.

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LNG World News Staff; Image: Teekay