Teekay LNG Partners LP entered a 13-year time charter contract with BP Shipping Ltd. (BP) for one newbuild LNG carrier, the company said June 15. Teekay could have another carrier if BP exercises an option by the end of third-quarter 2015.
The carriers will handle BP’s volumes from the Freeport LNG terminal at Quintana Island near Freeport, Texas, Teekay said. Three LNG trains can handle 13.2 million metric tonnes of LNG per year, and are scheduled to start up in 2018.
The two fuel-efficient, 174,000 cubic meter carriers will be built by Hyundai Samho Heavy Industries Co. Ltd. of South Korea. They are scheduled for delivery in first-quarter 2019, and there is an option to order one additional vessel.
Teekay will finance the newbuilds through some of its liquidity. Teekay plans to secure long-term debt financing for the carriers before their delivery, the company added.
“We are excited to be supporting our second U.S. LNG export project, adding Freeport LNG to our existing charters committed to Cheniere Energy’s Sabine Pass, and we look forward to the continued growth in U.S. LNG exports, which are expected to create substantial future demand for LNG transportation services,” said Peter Evensen, CEO of Teekay GP LLC. “This accretive transaction both builds on our strong relationship with BP and our portfolio of fuel-efficient LNG carrier newbuildings on long-term contracts.”
Teekay LNG Partners LP is based in Hamilton, Bermuda.
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