Teekay Sign Yamal Charter for Newbuild
Teekay LNG Partners L.P. has entered into a 15-year time-charter contract with the Yamal LNG project, sponsored by Novatek OAO, Total SA, China National Petroleum Corporation and Silk Road Fund, to provide Yamal LNG with conventional liquefied natural gas (LNG) transportation services. Yamal LNG is scheduled to commence production in 2017.
The fixed-rate time-charter contract will be serviced by one of Teekay LNG's previously unchartered 174,000 cubic meter MEGI LNG carrier newbuildings that is scheduled for delivery in early-2019.
"We are pleased that our commercial team has secured this new 15-year charter contract which expands our service offering to the now fully-financed Yamal LNG project and reduces our uncommitted newbuildings to only one vessel," commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. "The Partnership will now provide this strategically-important project with both icebreaker and conventional LNG transportation services. In addition, the new contract further builds on the Partnership's diversified contract portfolio, providing additional long-term stability to the Partnership's cash flows."