Teekay LNG adds to its fleet
Teekay LNG Partnership (ticker: TGP) announced today that it has entered into a 13-year time-charter contract with BP Shipping Limited (ticker: BP) for one LNG carrier, with an option exercisable by BP by the end of the third quarter of 2015 for a second LNG carrier under similar terms. The ships will provide capacity for BP’s LNG volumes from the Freeport LNG project, according to a press release from Teekay.
In connection with the signing of the contracts with BP, TGP ordered the construction of two 174,000 cubic meter LNG carriers, which are scheduled for delivery in the first quarter of 2019, plus an option to order a third vessel. Teekay plans to finance the construction of the ships through the use of existing liquidity and expects to secure long-term debt financing for the vessels prior to their delivery.
TGP has interests in 50 LNG carriers, 30 LPG/multigas carriers and 8 conventional tankers. The partnership’s interest in these vessels ranges from 20% to 100%. Most of Teekay’s transportation services are under long-term, fixed-rate charter contracts.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.