Teekay Awarded Four Long-Term LNG Contracts

Teekay Shipping Corporation announced that it has been awarded contracts to charter four 217,000 m3 liquefied natural gas ("LNG") carriers to Ras Laffan Liquefied Natural Gas Co. Limited (3) ("RasGas 3"), a joint venture company between a subsidiary of ExxonMobil Corporation and Qatar Petroleum. The vessels will be chartered to RasGas 3 at fixed rates, with inflation adjustments, for a period of 25 years (with options to extend up to 35 years), commencing in the first half of 2008. In connection with these charter contracts, Teekay has entered into agreements with Samsung Heavy Industries Co. Ltd. to construct four LNG carriers, representing a total contract price of approximately $1 billion. The charter contracts are expected to generate approximately $86 million in annualized cash flow from vessel operations. Qatar Gas Transport Company will own a 60 percent interest in the vessels as permitted under the tender documents. It accordance with existing agreements, Teekay will offer its 40 percent interest in these ships and associated contracts to its 78% owned subsidiary Teekay LNG Partners L.P.