Teekay Gets Piece of BG Groups Action

 
As reported by the World Maritime News last week, BG Group and the investor of Queensland Curtis LNG Project contracted Hudong-Zhonghua Shipbuilding Co., Ltd. to build four LNG carriers plus two options.
The vessels, which are scheduled for delivery between September 2017 and January 2019, will each operate under 20-year time-charter contracts, plus extension options, with Methane Services Limited, a wholly-owned subsidiary of BG.
Through this transaction, the Partnership has acquired a 30 percent ownership interest in the first two LNG carrier newbuildings with the balance of ownership held by CETS (an affiliate of China National Offshore Oil Corporation (CNOOC)) and China LNG Shipping (Holdings) Limited (CLNG), and a 20 percent ownership interest in the second two LNG carrier newbuildings with the balance of ownership held by CETS, CLNG and BW Group.
Teekay Corporation will provide construction supervision services for the newbuildings, and technical management of the vessels upon their respective deliveries.
The company will finance its pro rata equity interest in future shipyard installment payments using a portion of its available liquidity with the balance of the total cost of the vessels financed with a new approximately $800m long-term debt facility secured by the vessels.
 Peter Evensen, Chief Executive Officer of Teekay GP LLC said:The long-term time-charter contracts for the four newbuildings, which complement and expand Teekay LNGs existing fixed-rate contact portfolio, will provide further stability for the Partnerships cash flows.
These vessels also further strengthen Teekay LNGs existing pipeline of growth projects scheduled to deliver between 2014 and 2018, which includes 10 LPG carrier newbuildings, through our Exmar LPG joint venture, and five MEGI LNG carrier newbuildings.

Press Release; July 7th, 2014