Teekay LNG completes $816 million financing for Yamal Arc7 carriers

Teekay’s first icebreaker LNG newbuilding, Eduard Toll (Image courtesy of Teekay LNG Partners)

Teekay LNG Partners, one of the world’s largest owners of LNG carriers, said on Monday it has completed an $816 million long-term debt facility to finance all six of the 50-percent owned Arc7 newbuildings which will serve the Yamal project in Russia.

The first vessel of the six ice-breaking carriers is scheduled for delivery in January 2018, and the remaining vessels through to early-2020.

These newbuildings will service the Novatek-operated Yamal LNG project under charter contracts with firm charter periods out to 2045 plus option periods.

The vessels have been designed to be able to perform year-round navigation through the Arctic with the icebreaking ability allowing them to proceed through ice up to 2.1 m thick.

“Together with our joint venture partner, China LNG Shipping, we are pleased to announce this significant project milestone for our Arc7 LNG carrier newbuildings for the Yamal LNG project, which has successfully commenced producing LNG at the first train and recently completed its first LNG cargo loading,” said Brody Speers, Chief Financial Officer of Teekay Gas Group Ltd.

“With the completion of this Arc7 financing, the partnership has now completed $2.2 billion in debt financings for our newbuildings in the past 12 months and has financed 14 of its remaining 15 LNG carrier newbuildings, which includes one floating storage unit,” added Speers.