Teekay to take one more

Deal with DSME for LNG carrier could be followed by four more
Teekay to take one more

Teekay LNG partners has anounced an agreement with Korean Shipbuilder DSME for a 173,000cbm MEGI LNG carrier, worth in the region of $220m. Teekay has the option to order up to four more vessels.

The announcement was made in Teekay LNG's Q4 results that also confirmed the company's intention to secure long-term contract employment for the ordered vessel prior to its delivery in Q4 2018.

The statement also reported that Teekay LNG had secured charters with Shell for five newbuilding LNG carriers. Upon delivery of the vessels between the second half of 2017 and into 2018, the vessels will operate as part of Shell's global LNG fleet under time-charters ranging in duration from six to eight years, plus extension options.

The statement added: "In connection with signing the new charters, the Partnership exercised its remaining options with Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea for the construction of three additional 173,400 cubic meter (cbm) LNG carrier newbuildings for an aggregate fully built-up cost of approximately $630 million.

"The newbuildings will be constructed with M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are designed to be significantly more fuel-efficient and have lower emission levels than engines currently used in LNG shipping.

"The new contracts with Shell will be serviced by two of the Partnership's three existing MEGI LNG carrier newbuildings under construction that were previously unchartered, and the three MEGI LNG carrier newbuildings ordered in early-December 2014."

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by Tom Holmes

Marine Trader Editor

Tom Holmes is the Editor of Marine Trader and readmt.com, the official publications of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to Marine Trader please get in touch.

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