Teekay, Chinese partner negotiating Yamal Icebreaker shipyard


2 _ NEWS LNG Shipping News 29 May 2014

Teekay LNG in March signed an LOI for a 50/50 joint venture with a Chinese LNG shipping company, to provide six icebreaking LNG carriers to ship from the Yamal LNG project.

Yamal LNG terminal, located on the Yamal Peninsula in Northern Russia, is a joint-venture company operated jointly by oil and gas companies, Russian Novatek (60 percent), French Total (20 percent) and Chinese state-controlled China National Petroleum Corporation CNPC (20 percent).

Teekay and its Chinese partner are now negotiating contract terms, including the shipbuilding

contracts and related time-charters, which it expects to finalise before the end of the year.

The Yamal LNG project will produce 16.5 million metric tons of LNG per annum when it starts up in 2017.


Teekay LNG has also posted increased cash flow from combined gas vessel operations (LPG and LNG) of $119.6 million in the first quarter of 2014, up from $107.6 million last year.

The increase in cash flow was mainly due to the February 2013 acquisition of a 50 percent interest in Exmar LPG BVBA, and two LNG carrier newbuildings acquired via sale-leaseback from Awilco LNG last year, WilForce and WilPride.

The ships are being leased back to Awilco LNG for a period of 5 years with a one year extension option.

In addition, Teekay LNG, through its LPG joint venture with Exmar NV, charters-in four LPG carriers. Teekay Parent currently owns a 35.3 percent interest in Teekay LNG, including the 2 percent sole general partner interest.

In early April 2014, Exmar LPG BVBA took delivery of the first of its 12 mid-size LPG carrier newbuildings.