HAMILTON, Bermuda, Dec. 11, 2017 (GLOBE NEWSWIRE) -- 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.
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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.