Teekay LNG Partners (NYSE:TGP) has taken a hint from a recently released U.S. government study on natural gas exports and has entered into an agreement with South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) calling for the construction of two LNG carriers, with options to order up to three additional vessels.
In a statement, Teekay says that it has ordered the vessels with the expectation to secure long-term contract employment for the vessels prior to their delivery in the first half of 2016. The order comes on the heels of a recently released report from that concluded unequivocally that natural gas exports would be a net benefit to the U.S. economy, providing almost no excuse for the U.S. government to not export more LNG.
“The delivery of these vessels is timed to coincide with the next wave of increased demand for LNG carriers which is expected when a large number of new LNG export projects come on-stream commencing from late-2015,” said Peter Evensen, Chief Executive Officer of Teekay GP LLC. “[The vessels are] also among the largest LNG carriers that will be able to transit the Panama Canal after its expansion project is complete, which makes them ideal for U.S. LNG exports. The recent U.S. Department of Energy study supported the export of LNG from the U.S.”
The 73,400 cubic meter newbuildings will be constructed with M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are expected to be significantly more fuel-efficient and have lower emission levels than other engines currently being utilized in LNG shipping.
Evensen added:
“We are confident these newbuildings will be especially attractive to our customers given their fuel-efficient engines as well as being built to a high specification at DSME.” Mr. Evensen continued, “With scheduled delivery in 2016, we believe that we are well-positioned to charter these LNG newbuildings on fixed-rate charter contracts prior to their delivery, thereby providing Teekay LNG with visible built-in growth.”
Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services primarily under long-term, fixed-rate charter contracts with major energy and utility companies through its fleet of 27 LNG carriers (including one LNG regasification unit), five LPG/Multigas carriers and 11 conventional tankers.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,128 members that receive our newsletter.
Have a news tip? Let us know.
Chinese bulk carrier Yi Peng 3 remains stopped in the Danish Straits with a Navy patrol ship in close proximity. The vessel is suspected of being involved in the damage...
European governments accused Russia on Tuesday of escalating hybrid attacks on Ukraine's Western allies, as Baltic nations investigated whether the cutting of two fiber-optic telecommunication cables in the Baltic Sea was sabotage.
A rapidly intensifying weather system, known as a “bomb cyclone,” has developed off the U.S. West Coast, creating perilous conditions for mariners and coastal communities in the Pacific Northwest. The...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,128 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
