Teekay LNG Partners Secures Long-Term Financing for Yamal ARC7 LNG Carriers
December 11 2017 - 6:59AM
Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP)
today announced the completion of an $816 million(1) long-term debt
facility to finance all six of the Partnership’s 50-percent owned
ARC7 LNG carrier newbuildings, the first vessel of which is
scheduled to deliver in January 2018, and the remaining vessels
through to early-2020. These newbuildings will service the
Yamal LNG project under charter contracts with firm charter periods
out to 2045 plus option periods.
“Together with our joint venture partner, China
LNG Shipping, we are pleased to announce this significant project
milestone for our ARC7 LNG carrier newbuildings for the Yamal LNG
project, which has successfully commenced producing LNG at the
first train and recently completed its first LNG cargo loading,”
commented Brody Speers, Chief Financial Officer of Teekay Gas Group
Ltd. “With the long-term financing for all six of our
50-percent owned ARC7 vessels now in place, we look forward to the
expected delivery and charter contract commencement of our first
ARC7 LNG carrier newbuilding in January 2018. With the
completion of this ARC7 financing, the Partnership has now
completed $2.2 billion in debt financings for our newbuildings in
the past 12 months and has financed 14 of its remaining 15 LNG
carrier newbuildings, which includes one floating storage
unit.”
(1) Based on the Partnership’s 50-percent ownership interests in
the six ARC7 LNG carriers.
About Teekay LNG
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 15 newbuildings), 30 LPG/Multigas
carriers (including three newbuildings) and five conventional
tankers. The Partnership's interests in these vessels range from 20
to 100 percent. In addition, the Partnership owns a 30
percent interest in a regasification terminal, which is currently
under construction. 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 and preferred
units trade on the New York Stock Exchange under the symbol “TGP”,
“TGP PR A” and “TGP PR B”, respectively.
For Investor Relations enquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website: www.teekay.com
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 the ARC7 LNG carrier newbuilding
deliveries; the commencement and duration of the vessel charter
contracts; and the financing of the Partnership’s remaining 15 LNG
carrier newbuildings. 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:
potential shipyard and project construction delays, newbuilding
specification changes or cost overruns; potential failure for the
Yamal LNG project to be completed for any reason, including due to
a lack of funding as a result of existing or future sanctions
against Russian entities and individuals, which may affect partners
in the project; potential delays or cancellation of the Yamal LNG
project; the inability of the charterer to make future charter
payments; the potential for early termination of the charter
contracts; our ability to maintain our debt facilities in good
standing and access funding thereunder; 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, 2016. The Partnership 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.
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