Image via Teekay FacebookTeekay LNG Partners L.P. (NYSE:TGP) has announced that it has exercised two of its three existing options with Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) two build another two 173,400 cubic meter liquefied natural gas carriers (LNGCs). This order adds to their original order for two LNGCs placed in December 2012.
These vessels are expected to be delivered in 2016 and are designed to be the maximum size to fit through the new Panama Canal once completed.
“The delivery of these two additional 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,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC.
“Our recently announced charter contracts with Cheniere Energy for the first two MEGI LNG carrier newbuildings, ordered in December 2012, are a good example of the contract opportunities available in the LNG shipping market and the attractiveness of these vessels with the new fuel-efficient MEGI engines. Given the strong fundamental outlook in LNG shipping, combined with the optimized design of these vessels, we are confident in our ability to secure fixed-rate charter contracts for these additional two newbuildings, which will provide Teekay LNG with further visible built-in growth. Furthermore, the new options we secured to order up to five additional LNG carrier newbuildings should provide the Partnership with a competitive advantage for the various LNG projects we are pursuing.”
Specifications:
These newbuildings will also be constructed with MAN B&W 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.
In connection with the exercise of these two newbuilding options, TGP has also negotiated options to build up to 5 additional ships at DSME.
In their press statement, TGP notes that the contract with DSME includes an installment payment schedule similar to the two LNG carrier newbuildings ordered from DSME in December 2012. TGP intends to initially finance the installment payments during construction using a portion of its existing liquidity, and expects to secure long-term debt financing for the two newbuildings prior to their scheduled deliveries.
Chinese shipyards have solidified their dominance in the construction of containerships, commanding an impressive 68.5% of the global boxship orderbook capacity, according to Alphaliner. This transformation marks a dramatic reversal...
The U.S. Navy’s ambitious modernization program for its Ticonderoga-class guided-missile cruisers has largely failed to meet its objectives, resulting in billions in wasted taxpayer dollars, according to a new Government...
Denmark has rejected a Japanese request to extradite anti-whaling activist Paul Watson over criminal charges dating back more than a decade, a Danish lawyer representing Watson said on Tuesday.
20 hours ago
Total Views: 772
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.