Teekay gets stake in four LNG newbuildings
- Project & Tenders
Teekay LNG Partners acquired ownership interests in four 174,000 cubic meter Tri-Fuel Diesel Electric (TFDE) liquefied natural gas carrier newbuildings from BG, which will be constructed by Hudong-Zhonghua Shipbuilding in China.
The vessels, which are scheduled to deliver between September 2017 and January 2019, will each operate under 20-year time-charter contracts, plus extension options, with Methane Services Limited, a wholly-owned subsidiary of BG.
Through this transaction, Teekay LNG has acquired a 30 percent ownership interest in the first two LNG carrier newbuildings with the balance of ownership held by CETS (an affiliate of China National Offshore Oil Corporation (CNOOC)) and China LNG Shipping (Holdings) Limited (CLNG), and a 20 percent ownership interest in the second two LNG carrier newbuildings with the balance of ownership held by CETS, CLNG and BW Group.
Teekay will provide construction supervision services for the newbuildings and technical management of the vessels upon their respective deliveries.
The company will finance its pro rata equity interest in future shipyard installment payments using a portion of its available liquidity with the balance of the total cost of the vessels financed with a new approximately $800 million long-term debt facility secured by the vessels.
Press Release, July 7, 2014; Image: Teekay LNG