Teekay strikes 5-year LNG time-charter deals with US Cheniere
Teekay LNG, the world's third-largest operator of LNG carriers, has signed time-charter contracts for two newbuilds slated for delivery in the first half of 2016, the company said Friday.
The Bermuda-headquartered shipowner has offered the two new LNG tankers, currently being built by South Korea's Daewoo Shipbuilding & Marine engineering, for five-year time-charter contracts to US-based Cheniere.
The 173,400-cubic meter LNG carriers were ordered in 2012 and will be on fixed-rate time-charter contracts to Cheniere.
Teekay did not disclose the rate.
"This is a pioneering transaction which combines one of the first US LNG export facilities with the first MEGI-propelled LNG carriers to be chartered," Teekay CEO Peter Evensen said in a statement.
The newbuilds will be constructed with M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, designed to be significantly more fuel-efficient with lower emission levels than current engines in LNG shipping, Teekay said.
"We are excited to be supporting Cheniere, which will be exporting volumes from the Sabine Pass LNG export facility, the first LNG export facility project in the contiguous United States to receive approval for LNG exports," Evensen said.
Evensen said he expects LNG transportation markets to have strong fundamentals in 2016.
Teekay LNG Partners has interests in 29 LNG carriers, including one LNG regasification unit and two newbuilds; 29 LPG/multigas carriers, including five chartered-in LPG carriers and eight newbuilds; and 11 conventional tankers.