Teekay LNG Partners announced that it has entered into an agreement with Daewoo Shipbuilding & Marine Engineering of South Korea for the construction of two 173,400 cubic meter Liquefied Natural Gas, or LNG, carrier newbuildings, with options to order up to three additional vessels. The Partnership intends to secure long-term contract employment for both vessels prior to their delivery in the first half of 2016. The newbuildings will be constructed with M-type, Electronically Controlled, Gas Injection twin engines, which are expected to be significantly more fuel-efficient and have lower emission levels than other engines currently being utilized in LNG shipping. The contract with DSME includes a favorable installment payment schedule, with the majority of the purchase price due upon delivery. The partnership intends to finance the installment payments during construction with a portion of its existing liquidity, which was approximately $420M as of September 30, and expects to secure long-term debt financing for the two vessels prior to their scheduled delivery.
- Liquefied Natural Gas