Teekay LNG inks 3-year charter for Magellan Spirit LNG carrier

Teekay LNG Partners on Wednesday said it has signed a new charter contract for its Magellan Spirit liquefied natural gas carrier. 

The fixed-rate charter deal has a 3-year term with an oil and gas company commencing during summer of 2019, the company said in a statement.

Concurrently, Teekay LNG extended the in-charter of the Magellan Spirit until the summer of 2022.

The company has also declared a cash distribution of $0.19 per common unit for the quarter ended March 31, 2019, a 36 percent increase over the previous quarter.

Commenting on the distribution increase, Mark Kremin, president and CEO of Teekay Gas Group, said, “our new annual distribution of $0.76 per unit is supported by our diverse portfolio of long-term fixed-rate LNG contracts.”

He added that with the new 3-year charter, the partnership’s LNG carrier fleet is approximately 97, 93 and 92 percent fixed for the remainder of this year, 2020 and 2021, respectively, supporting the company’s expected earnings growth.