Teekay has announced that it has entered into a 13-year time-charter contract with BP Shipping (BP) for one LNG carrier newbuilding, plus an option exercisable by BP by the end of the third quarter of 2015 for one additional LNG carrier under similar terms.
The vessels, including the optional vessel if exercised, will primarily provide LNG transportation services for BP's LNG volumes from the Freeport LNG project located on Quintana Island near Freeport, Texas, which consists of three LNG trains with a total capacity of 13.2 million tonnes per annum, scheduled for start-up in 2018.
In connection with signing the contracts with BP, Teekay ordered two fuel-efficient 174,000cbm LNG carrier newbuildings to be constructed by Hyundai Samho Heavy Industries of South Korea, scheduled for delivery in the first quarter of 2019, plus an option to order one additional vessel.
Teekay intends to initially finance the instalment payments for the LNG carrier newbuildings with a portion of its existing liquidity and it expects to secure long-term debt financing for the vessels prior to their scheduled deliveries.
