As part of a consortium that has ordered four 160,000 m3 liquefied natural gas (LNG) carriers for delivery beginning in the summer of 2011, Teekay continues to expand its presence in the worldwide LNG sector.

Various LNG routes that Teekay currently services are indicated by red lines and future routes are noted by dotted lines.

The consortium of Teekay, Mitusi & Co. and NYK has signed an agreement to charter the vessels for 20 years to the Angola LNG Project, which is projected to produce 5 million tonnes of LNG annually for export to the United States.

Teekay will operate two of the vessels that will service this route. All four vessels will be built by Samsung Heavy Industries of South Korea, and NYK will operate the other half of the fleet.

The Angola LNG Project is being developed by Chevron (36.4%) in partnership with Angolan state-owned Sonangol (22%). Other partners include Italian energy giant Eni, British Petroleum, and Total, each with 13.6%.

“It’s an exciting step forward for Teekay in the LNG sector, which includes expanding our relationship with existing customers such as Chevron, BP and Total, and serving new customers such as Eni and Sonangol,” says Andres Luna, Vice President, Business Development, Teekay Gas Services.

Andres Luna describes the consortium as “a very solid relationship with NYK, one of the world’s largest LNG ship owners, and Mitsui, a leading global trading company.”

The group’s focus includes cooperating in a number of areas and projects and he notes that the Angola LNG Project is the consortium’s first to come to fruition since discussions began in 2005.

The interest in Angola stems from its daily production of 1.4 million barrels of oil, making it the second largest petroleum exporting country after Nigeria in sub-Saharan Africa.

The Angola LNG Project produces LNG from natural gas generated during the oil production process that would otherwise be flared or re-injected into the reservoir, which would impair recovery. Converting it into LNG eliminates environmental concerns and makes use of a clean energy source. The Angola LNG Project is also of national importance and key to the country’s reconstruction and growth.

The first LNG from the project is expected in early 2012 and will be transported to the Gulf LNG Energy terminal currently under development at Pascagoula in the U.S. Gulf of Mexico.

“With each new project, Teekay continues to meet its goal of becoming a leading player in LNG transportation similar to our role in the oil tanker industry,” he adds.

“More opportunities for the consortium are also on the horizon,” he notes. “It’s exciting looking to the future.”