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.
