HAMILTON, BERMUDA--(Marketwired - Dec. 2, 2015) - A consortium composed of Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP), Samsung C&T (Samsung) and Gulf Investment Corporation (GIC) executed today with the Government of the Kingdom of Bahrain the project agreements for the development of an LNG receiving and regasification terminal in Bahrain. The project, to be developed on a BOOT (build, own, operate, transfer) basis, will be located in Hidd Industrial area of Bahrain and will help the Kingdom meet the increasing demand for gas supplies to satisfy its industrial and urban development.
The Oil and Gas Holding Company (Nogaholding) awarded the project to Teekay LNG-Samsung-GIC consortium following an international competitive tendering process. The project will be owned and operated through a new joint venture, Bahrain LNG W.L.L., owned by Nogaholding (30%), Teekay LNG (30%), Samsung (20%) and GIC (20%) and is the first of its kind in the Middle East to be developed on a public-private partnership (PPP) scheme.
The project will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility. The project will have a capacity of 800 million standard cubic feet per day and will be owned and operated under a twenty-year agreement commencing on 15 July 2018.
Teekay LNG-Samsung-GIC selected GS Engineering & Construction as the EPC contractor of the project. Teekay LNG will supply the FSU vessel which will be modified specifically for this project, through a twenty (20) year time-charter to the joint venture.
The project, not including the FSU to be time chartered from Teekay LNG, project management and development, financing and other costs, is expected to cost approximately $655 million, which will be funded through a combination of equity capital and project finance through a consortium of regional and international banks.
"We are thrilled to partner with GIC, who has experience with infrastructure project development throughout the Gulf region, and with Samsung, who has developed LNG regasification terminals elsewhere in the world", commented Mr. Peter Evensen, Teekay LNG's Chief Executive Officer. "In addition, we are excited to be able to dedicate and long-term charter one of our LNG carriers."
Mr. Shin Kim, CEO of Samsung, commented, "It is a great honor to have remarkable sponsorships with GIC, a leading investor with extensive experience and insight in the GCC region and also with Teekay LNG, a world class LNG shipping company with the highest technical expertise required for the Project. We will do our best for the successful execution of the Project based on solid collaboration with our partners."
Mr. Ibrahim AlQadhi, CEO of GIC stated: "GIC is proud to be a pioneer investor in GCC infrastructure projects through partnerships with world leading industry partners" Mr. AlQadhi further added: "Winning the LNG Import Terminal project reinforces GIC status as the largest private industrial investor in Bahrain and one of the largest private employers of Bahraini nationals"
Note to Editors
Teekay LNG Partners L.P.
Teekay LNG Partners is one of the world's largest independent owners and operators of LNG carriers, providing LNG, LPG and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts through its interests in 50 LNG carriers (including one LNG regasification unit and 21 newbuildings), 30 LPG/Multigas carriers (including three in-chartered LPG carriers and seven newbuildings) and eight conventional tankers. The Partnership's interests in these vessels range from 20 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".
For more information about Teekay LNG Partners L.P., visit: www.teekaylng.com
Samsung C&T Corporation
Founded in 1938, Samsung C&T Corporation is the parent company of Samsung Group, in which its affiliates engage in a wide variety of business, such as electronics and heavy industries. Samsung C&T Corporation is a trading company that provides integrated solutions in plant & machinery business, including engineering & construction, financing, risk management and off-take in power generation, plant, and infrastructure to clients worldwide through its global network of over 90 offices in 44 countries.
For more information about Samsung C&T Corporation visit: www.samsungcnt.com
Gulf Investment Corporation
GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC provides a range of financial services that support the development of private enterprise and economic growth in the region. As at end 2014, GIC had total assets of about $5.2 billion and shareholders' equity exceeding $2.7 billion.
GIC has extensive experience in, and commitment to, developing infrastructure and utilities projects in the Region. GIC is a co-developer six utilities projects in the GCC with a total assets base of approximately $10 billion. GIC is involved in the following:
- Founder and major shareholder in Al-Ezzel Power Company, the first IPP in the Kingdom of Bahrain with 950MW capacity and circa $ 500 million of total cost;
- Founder and major shareholder in Al-Dur Power and Water Company, the largest IPP and the largest privately-owned industrial project in the Kingdom of Bahrain with 1,250 MW and 40 MIGD capacity and circa $ 2100 million of total cost;
- Founder and a major shareholder in Jubail Water & Power Co, the largest water and power plant in the world with 2,750 MW and 176 MIGD capacity and $ 3400 million of total cost;
- Founder and a major shareholder in Shuqaiq Water & Power Co, the second WEC IWPP with 850 MW and 48 MIGD capacity and $ 1900 million of total cost;
- Investor and board member in the Ras Laffan Power Company, the first IWPP project in Qatar with 750 MW and 40 MIGD of capacity and $ 700 million of total cost.
- Investor (through OIC) in the Sembcorp Salalah Power & Water Company, the largest IWPP project in Salalah region in Oman with 490 MW and 15 MIGD of capacity and $ 1000 million of total cost.
For more information about Gulf Investment Corporation, visit: www.gic.com.kw
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 timing of project start-up and commencement of the time-charter for Teekay LNG's FSU; the total cost and financing for the project; the Kingdom's future demand for gas supplies; and the capacity of the project. 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: shipyard and project construction delays; costs relating to the project; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the ability of joint venture to secure financing for the project; the ability of Teekay LNG to secure financing for the FSU; 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, 2014 and Form 6-K for the quarter ended June 30, 2015. Teekay LNG 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.