February 12, 2009
HAMILTON, BERMUDA–(Marketwire – Feb. 12, 2009) – Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP) today reported net income of $45.9 million for the quarter ended September 30, 2008, compared to a net loss $21.6 million for the same period of the prior year. The results for the quarters ended September 30, 2008 and 2007 included a number of specific non-cash items which had the net effect of increasing net income by $29.6 million and decreasing net income by $32.4 million, respectively, as detailed in Appendix A to this release. Net voyage revenues(1) for the third quarter of 2008 increased to $77.6 million from $62.6 million in the same quarter of the prior year. Net income for the nine months ended September 30, 2008 was $35.4 million, compared to net income of $26.3 million for the same period of the prior year. The results for the nine months ended September 30, 2008 and 2007 included a number of specific non-cash items which had the net effect of increasing net income by $0.7 million and decreasing net income by $2.2 million, respectively, as detailed in Appendix A to this release. For accounting purposes, the Partnership is required to recognize the changes in the fair value of its derivative instruments in the statement of income (loss). This method of accounting does not affect the Partnership’s cash flows or the calculation of distributable cash flow, but results in the recognition of unrealized gains or losses on the statements of income (loss). During the three months ended September 30, 2008, the Partnership generated $28.9 million of distributable cash flow(2), compared to $20.4 million for the same quarter of the prior year. For the quarter ended September 30, 2008, the Partnership raised its quarterly cash distribution by approximately 4 percent to $0.57 per unit from $0.55 per unit for the previous quarter. This increase reflects the acquisition of the 40 percent interest in the four RasGas 3 LNG carriers delivered between May and July of 2008. The cash distribution was paid on November 14, 2008 to all unitholders of record on November 7, 2008. On February 2, 2009, the Partnership declared a cash distribution of $0.57 per unit for quarter ended December 31, 2008. The cash distribution is payable on February 13, 2009, to all unitholders of record on February 6, 2009. (1) Net voyage revenues represents voyage revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Partnership’s web site at www.teekaylng.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure. (2) Distributable cash flow is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Please see Appendix B for a reconciliation of this non-GAAP measure to the most directly comparable GAAP financial measure. Operating Results The following table highlights certain financial information for Teekay LNG’s segments: the liquefied gas segment and the suezmax segment (please refer to the “Teekay LNG Partners’ Fleet” section of this release below and Appendix C for further details). The Partnership’s financial statements for the prior periods include historical results of vessels acquired by the Partnership from Teekay Corporation (Teekay), referred to herein as the Dropdown Predecessor, for the period when these vessels were owned and operated by Teekay. /T/ ————————————————————————– Three Months Ended Three Months Ended September 30, 2008 September 30, 2007 (unaudited) (unaudited) —————————————————– Liquefied Liquefied (in thousands Gas Suezmax Gas Suezmax of U.S. dollars) Segment Segment Total Segment Segment Total ————————————————————————– Net voyage revenues 57,479 20,112 77,591 43,166 19,434 62,600 Vessel operating expenses 10,776 6,724 17,500 7,977 5,958 13,935 Depreciation & amortization 14,310 4,795 19,105 11,490 5,011 16,501 Cash flow from vessel operations(i) 44,342 10,890 55,232 33,526 12,407 45,933 ————————————————————————– (i) Cash flow from vessel operations represents income from vessel operations before depreciation and amortization expense and unrealized gains or losses relating to derivatives. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Partnership’s web site at www.teekaylng.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure. /T/ Liquefied Gas Segment Cash flow from vessel operations from the Partnership’s liquefied gas segment increased to $44.3 million in the third quarter of 2008 from $33.5 million in the same quarter of the prior year, primarily due to the acquisition of the two Kenai LNG carriers from Teekay Corporation on April 1, 2008 and 31 off-hire days incurred in the third quarter of 2007. Suezmax Segment Cash flow from vessel operations from the Partnership’s suezmax tanker segment decreased to $10.9 million for the third quarter of 2008 from $12.4 million in the same quarter of the prior year. This is due in part to a $0.7 million decrease in revenue resulting from interest rate adjustments to the daily charter rates for five Suezmax tankers under time-charter contracts. Under the terms of the capital leases relating to the vessels, there was a corresponding decrease in the Partnership’s lease payments, which is reflected as a decrease to interest expense. Accordingly, these and future interest rate adjustments do not impact the Partnerships’ current or future cash flows or net income. In addition, cash flow from vessel operations decreased due to an increase in vessel operating costs related mainly to higher crewing costs and repairs and maintenance costs. Future LNG/LPG Projects Below is a summary of LNG and LPG newbuildings that the Partnership has agreed to, or has the right to, acquire: Skaugen LPG The Partnership has agreed to acquire five LPG carriers from subsidiaries of IM Skaugen ASA (Skaugen) that are currently under construction and will be purchased upon their deliveries from the shipyard, which are scheduled in 2009 and 2010. Upon their delivery, the vessels will commence service under 15-year fixed-rate charters to Skaugen. Tangguh LNG The Partnership has agreed to acquire Teekay’s 70 percent interest in two 155,000 cubic meter newbuilding LNG carriers. The Partnership expects the purchase to be effective during the first and second quarters of 2009, respectively. The Tangguh vessels will provide transportation services to The Tangguh Production Sharing Contractors, a consortium led by a subsidiary of BP plc, to service the Tangguh LNG project in Indonesia at fixed rates, with inflation adjustments, for a period of 20 years. An Indonesian joint venture partner owns the remaining 30 percent interest in these vessels. Angola LNG As previously announced, a consortium in which Teekay has a 33 percent interest, has agreed to charter four newbuilding LNG carriers for a period of 20 years to the Angola LNG Project, which is being developed by subsidiaries of Chevron, Sonangol, BP, Total and ENI. The vessels will be chartered at fixed rates, with inflation adjustments, following their deliveries, which are scheduled to commence in 2011. In accordance with an agreement between Teekay and Teekay LNG, Teekay is obligated to offer the Partnership its interest in these vessels and related charter contracts no later than 180 days before delivery of the newbuilding LNG carriers. Teekay LNG’s Fleet The following table summarizes the Partnership’s fleet as of December 31, 2008: /T/ ————————————————————————– Number of Vessels ——————————————- Delivered Committed Vessels Vessels Total ——————————————- LNG Carrier Fleet 13 2(1) 15 LPG Carrier Fleet 1 5(2) 6 Suezmax Tanker Fleet 8 – 8 ————————————————————————– Total 22 7 29 ————————————————————————– (1) Represents the 70 percent interest in the two newbuilding LNG carriers relating to the Tangguh LNG project, as described above. Excludes Teekay’s 33 percent interest in the four Angola LNG newbuildings, as described above. (2) Represents the five Skaugen LPG carriers currently under construction, as described above. /T/ Liquidity As of September 30, 2008, the Partnership had total liquidity of $504.4 million, comprised of $59.7 million in cash and cash equivalents (of which $21.4 million is only available to the Tangguh joint venture) and $444.7 million in undrawn medium-term revolving credit facilities. About Teekay LNG Partners L.P. Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time-charter contracts with major energy and utility companies through its fleet of fifteen LNG carriers, six LPG carriers and eight Suezmax class crude oil tankers. Two of the fifteen LNG carriers are newbuildings scheduled for delivery to the Partnership in the first half of 2009. Five of the six LPG carriers are newbuildings scheduled for delivery in 2009 and 2010. Teekay LNG Partners’ common units trade on the New York Stock Exchange under the symbol “TGP”. TEEKAY LNG PARTNERS L.P. SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands of U.S. dollars, except unit data) /T/ Three Months Ended Nine months Ended ——————————— ———————— September June September September September 30, 2008 30, 2008 30, 2007 30, 2008 30, 2007 (unaudited) (unaudited) (unaudited) (unaudited)(4) (unaudited) ——— ——— ——— ———— ——— VOYAGE REVENUES(1) 78,206 62,316 62,917 214,133 200,936 ————————————————————————— OPERATING EXPENSES Voyage expenses 615 649 317 1,672 857 Vessel operating expenses 17,500 20,792 13,935 56,699 41,686 Depreciation and amortization 19,105 18,872 16,501 56,767 48,875 General and administrative 4,167 5,745 3,531 14,367 10,808 ————————————————————————— 41,387 46,058 34,284 129,505 102,226 ————————————————————————— Income from vessel operations 36,819 16,258 28,633 84,628 98,710 ————————————————————————— OTHER ITEMS Interest (expense) gain(2) (76,585) 40,396 (86,130) (141,725) (83,317) Interest income (loss)(3) 36,680 (6,025) 43,784 73,446 43,719 Income tax recovery (expense) 336 (8) 195 248 (1,222) Foreign exchange gain (loss)(5) 48,567 (29) (21,555) 14,647 (32,037) Other – net (1,851) (534) (62) (2,450) (190) Goodwill impairment (3,648) – – (3,648) – ————————————————————————— Income (loss) before non-controlling interest 40,318 50,058 (35,135) 25,146 25,663 Non-controlling interest 5,571 (18,342) 13,501 10,235 593 ————————————————————————— Net income (loss) 45,889 31,716 (21,634) 35,381 26,256 ————————————————————————— ————————————————————————— Limited partners’ units outstanding: Weighted-average number of common units outstanding – Basic and diluted 33,338,320 29,494,930 22,540,547 28,475,744 21,377,910 Weighted-average number of subordinated units outstanding – Basic and diluted 11,050,929 13,034,429 14,734,572 12,933,082 14,734,572 Weighted-average number of total units outstanding – Basic and diluted 44,389,249 42,529,359 37,275,119 41,408,826 36,112,482 ————————————————————————— (1) Due to the change in fair value of a profit sharing agreement between Teekay and the Partnership for the Toledo Spirit time-charter contract, voyage revenues includes an unrealized gain of $0.7 million for the three months ended September 30, 2008, and unrealized losses of $9.3 million and $0.8 million for the three months ended June 30, 2008 and September 30, 2007, respectively. Voyage revenues includes an unrealized loss of $11.3 million and an unrealized gain of $13.6 million for the nine months ended September 30, 2008 and September 30, 2007, respectively. These amounts are non-cash and hence, do not affect the Partnership’s cash flows or the calculation of distributable cash flow. (2) Interest (expense) gain includes unrealized losses of $39.4 million and $51.2 million for the three months ended September 30, 2008 and September 30, 2007, respectively, and an unrealized gain of $76.2 million for the three months ended June 30, 2008, from interest rate swaps. Interest (expense) gain includes an unrealized loss of $30.4 million and an unrealized gain of $19.5 million for the nine months ended September 30, 2008 and September 30, 2007, respectively, from interest rate swaps. These amounts are non-cash and hence, do not affect the Partnership’s cash flows or the calculation of distributable cash flow. (3) Interest income (loss) includes unrealized gains of $17.5 million and $27.0 million for the three months ended September 30, 2008 and September 30, 2007, respectively, and an unrealized loss of $23.2 million for the three months ended June 30, 2008, from interest rate swaps. Interest income (loss) includes unrealized gains of $20.5 million and unrealized losses of $4.1 million for the nine months ended September 30, 2008 and September 30, 2007, respectively, from interest rate swaps. These amounts are non-cash and hence, do not affect the Partnership’s cash flows or the calculation of distributable cash flow. (4) Includes the results of the Dropdown Predecessor for two vessels, the Polar Spirit and Arctic Spirit, from January 1, 2008 to March 31, 2008 when these vessels were operating and under the common control of Teekay prior to their acquisition by the Partnership. As a result of the inclusion of the Dropdown Predecessor for the two vessels, net income increased by $0.9 million for the nine months ended September 30, 2008. (5) The Partnership’s Euro-denominated revenues currently approximate its Euro-denominated expenses and debt service costs. As a result, the Partnership currently is not exposed materially to foreign currency fluctuations. However, for accounting purposes, the Partnership is required to revalue all foreign currency-denominated monetary assets and liabilities based on the prevailing exchange rate at the end of each reporting period. This revaluation does not affect the Partnership’s cash flows or the calculation of distributable cash flow, but results in the recognition of unrealized foreign currency translation gains or losses in the income statement. /T/ TEEKAY LNG PARTNERS L.P. SUMMARY CONSOLIDATED BALANCE SHEETS(1) (in thousands of U.S. dollars) /T/ ————————————————————————— As at As at September 30, December 31, 2008 2007(3) (unaudited) (unaudited) ———— ———– ASSETS Cash and cash equivalents 59,731 91,891 Restricted cash – current 32,195 26,662 Other current assets 49,070 29,621 Advances to affiliates 8,039 – Restricted cash – long-term 642,626 652,567 Vessels and equipment 1,794,439 1,824,799 Advances on newbuilding contracts 354,512 240,773 Other assets(4) 1,020,871 762,089 Intangible assets 144,087 150,935 Goodwill 35,631 39,279 ————————————————————————— Total Assets 4,141,201 3,818,616 ————————————————————————— ————————————————————————— LIABILITIES AND PARTNERS’ EQUITY Accounts payable and accrued liabilities 53,904 44,226 Current portion of long-term debt and capital leases 114,754 187,635 Current portion of long-term debt related to newbuilding vessels to be delivered 52,200 34,665 Advances from affiliates and joint venture partners 71,656 269,092 Long-term debt and capital leases(4) 2,632,833 1,586,073 Long-term debt related to newbuilding vessels to be delivered 229,733 774,618 Other long-term liabilities(4) 95,953 71,637 Non-controlling interest(2) 41,726 141,378 Partners’ equity 848,442 709,292 ————————————————————————— Total Liabilities and Partners’ Equity 4,141,201 3,818,616 ————————————————————————— ————————————————————————— (1) Due to the Partnership’s agreement to acquire Teekay’s 70 percent interest in the Tangguh project, the Partnership is required to consolidate Tangguh under U.S. generally accepted accounting principles. Due to the Partnership’s acquisition of a 40 percent interest in the four RasGas 3 carriers on May 6, 2008, the Partnership is required to equity account for its investment in RasGas 3 joint venture under U.S. generally accepted accounting principles. (2) As at September 30, 2008, the non-controlling interest includes 100 percent of the equity interest in the Tangguh project as the Partnership had not yet acquired the interest in the Tangguh project and is consolidating the Tangguh project as described in note (1) above. As at December 31, 2007, the Partnership had not yet acquired either the Tangguh or the RasGas 3 projects, and as such, the non-controlling interest for this period includes 100 percent of the equity interest in the Tangguh project and 100 percent equity in Teekay Nakilat Holdings Corporation (RasGas 3 project), although the Partnership’s actual equity interest in the latter joint venture is only 40 percent. (3) Retroactively adjusted to include the Dropdown Predecessor for two vessels, the Polar Spirit and Arctic Spirit, which were acquired from Teekay on April 1, 2008, as if the vessels had been acquired by the Partnership on December 13, 2007 and December 14, 2007, respectively, the date the vessels were operating and under the common control of Teekay. (4) Through a wholly-owned subsidiary, the Partnership owns a 40 percent interest in a joint venture that owns the four RasGas 3 LNG carriers. The joint venture partner, a wholly-owned subsidiary of Qatar Gas Transport Company, owns the remaining 60 percent interest. Both wholly- owned subsidiaries are joint and several co-borrowers with respect to the joint venture’s term loan and related interest rate swap agreements. As a result, the Partnership’s balance sheet reflects 100 percent of the joint ventures’s term loan and interest rate swap agreements, as well as offsetting increases in assets. As at September 30, 2008, the effect of the 60 percent gross-up were increases to total debt of $525.5 million, other long-term liabilities of $11.6 million and other assets of $537.1 million. In December 2008, the term loan and related interest rate swap agreements were novated to the joint venture company that owns the four RasGas 3 LNG carriers. Since the Partnership’s 40% interest in the joint venture company is equity accounted for, this will result in a reduction in total debt of approximately $875 million as at December 31, 2008, compared to September 30, 2008. /T/ TEEKAY LNG PARTNERS L.P. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars) /T/ Nine months Ended September 30, ————————– 2008 2007 (unaudited) (unaudited) ————————— Cash and cash equivalents provided by (used for) OPERATING ACTIVITIES ————————————————————————— Net operating cash flow 91,300 81,406 ————————————————————————— FINANCING ACTIVITIES Excess of purchase price over the contributed basis of Teekay Nakilat (III) Holdings Corporation (25,120) – Excess of purchase price over the contributed basis of Teekay Nakilat Holdings Corporation – (13,844) Distribution to Teekay Corporation for the purchase of Kenai LNG carriers (230,000) – Distribution to Teekay Corporation for the purchase of Dania Spirit LLC carrier – (18,548) Proceeds from long-term debt 819,056 804,468 Capitalized loan costs (2,248) (1,952) Scheduled repayments of long-term debt and capital leases (38,950) (28,500) Prepayments of long-term debt (321,000) (188,000) Decrease (increase) in restricted cash 2,032 (12,817) Net advances from affiliates 3,974 (415) Net advances from joint venture partners 607 22,587 Cash distributions paid (70,631) (53,564) Proceeds from issuance of units 202,519 86,044 Equity distribution from Teekay Corporation 3,281 – ————————————————————————— Net financing cash flow 343,520 595,459 ————————————————————————— INVESTING ACTIVITIES Advances to joint venture (264,721) (457,525) Receipt of Spanish re-investment tax credit 5,431 – Return of capital of Teekay BLT Corporation to Teekay Corporation (19,600) – Purchase of Teekay Nakilat (III) Holdings Corporation (73,070) – Purchase of Teekay Nakilat Holdings Corporation – (52,252) Expenditures for vessels and equipment (115,020) (155,483) ————————————————————————— Net investing cash flow (466,980) (665,260) ————————————————————————— (Decrease) increase in cash and cash equivalents (32,160) 11,605 Cash and cash equivalents, beginning of the period 91,891 29,288 ————————————————————————— Cash and cash equivalents, end of the period 59,731 40,893 ————————————————————————— ————————————————————————— /T/ TEEKAY LNG PARTNERS L.P. APPENDIX A – SPECIFIC ITEMS AFFECTING NET INCOME (in thousands of U.S. dollars, except per share data) Set forth below are some of the significant items of income and expense that affected the Partnership’s net income for the three and nine months ended September 30, 2008 and September 30, 2007, all of which items are typically excluded by securities analysts in their published estimates of the Partnership’s financial results: /T/ ————————————————————————— Three Months Nine Months Ended Ended September 30, September 30, 2008 2008 ———— ———— (unaudited) (unaudited) Foreign currency exchange gains(1) 48,567 14,647 Unrealized losses from derivative instruments(2) (21,223) (21,231) Goodwill impairment (3,648) (3,648) Non-controlling interests’ share of items above 5,858 10,904 ————————————————————————— Total 29,554 672 ————————————————————————— ————————————————————————— ————————————————————————— Three Months Nine Months Ended Ended September 30, September 30, 2007 2007 ———— ———— (unaudited) (unaudited) Foreign currency exchange losses(1) (21,555) (32,037) Unrealized gains (losses) from derivative instruments(2) (25,075) 28,985 Non-controlling interests’ share of items above 14,239 857 ————————————————————————— Total (32,391) (2,195) ————————————————————————— ————————————————————————— (1) Foreign currency exchange gains and losses primarily relate to the revaluation of the Partnership’s debt denominated in Euros. (2) Reflects the unrealized gain or loss due to changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes. /T/ TEEKAY LNG PARTNERS L.P. APPENDIX B – RECONCILIATION OF NON-GAAP FINANCIAL MEASURE (in thousands of U.S. dollars) Description of Non-GAAP Financial Measure – Distributable Cash Flow (DCF) Distributable cash flow represents net income adjusted for depreciation and amortization expense, non-cash items, non-controlling interest, estimated maintenance capital expenditures, gains and losses on vessel sales, income taxes and foreign exchange related items. Maintenance capital expenditures represent those capital expenditures required to maintain over the long-term the operating capacity of, or the revenue generated by the Partnership’s capital assets. Distributable cash flow is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Distributable cash flow is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to net income or any other indicator of the Partnership’s performance required by accounting principles generally accepted in the United States. The table below reconciles distributable cash flow to net income. /T/ ————————————————————————— Three Months Ended September 30, 2008 (unaudited) ————————————————————————— Net income 45,889 Add: Depreciation and amortization 19,105 Goodwill impairment 3,648 Non-cash items 23,384 Equity loss of RasGas 3 joint venture 1,722 Partnership’s share of RasGas 3 DCF before estimated maintenance capital expenditures 713 Less: Estimated maintenance capital expenditures 8,825 Foreign exchange gain 48,567 Income tax recovery 336 Non-controlling interest 5,571 ————————————————————————— Distributable Cash Flow before Non-Controlling interest 31,162 ————————————————————————— Non-controlling interests’ share of DCF before estimated maintenance capital expenditures (2,259) ————————————————————————— Distributable Cash Flow 28,903 ————————————————————————— ————————————————————————— /T/ TEEKAY LNG PARTNERS L.P. APPENDIX C – SUPPLEMENTAL SEGMENT INFORMATION (in thousands of U.S. dollars) /T/ Three Months Ended September 30, 2008 ————————————- (unaudited) Liquefied Suezmax Gas Segment Segment Total ————————————————————————— Net voyage revenues(1) 57,479 20,112 77,591 Vessel operating expenses 10,776 6,724 17,500 Depreciation and amortization 14,310 4,795 19,105 General and administrative 2,361 1,806 4,167 ————————————————————————— Income from vessel operations 30,032 6,787 36,819 ————————————————————————— ————————————————————————— Three Months Ended September 30, 2007 ————————————- (unaudited) Liquefied Suezmax Gas Segment Segment Total ————————————————————————— Net voyage revenues(1) 43,166 19,434 62,600 Vessel operating expenses 7,977 5,958 13,935 Depreciation and amortization 11,490 5,011 16,501 General and administrative 1,663 1,868 3,531 ————————————————————————— Income from vessel operations 22,036 6,597 28,633 ————————————————————————— ————————————————————————— (1) Net voyage revenues represents voyage revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see the Partnership’s web site at www.teekaylng.com for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure. /T/ FORWARD LOOKING STATEMENTS This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: the Partnership’s future growth prospects; Teekay offering its interest in the Angola LNG Project vessels to the Partnership; the timing of the delivery of the Tangguh LNG carriers; the timing of LNG and LPG newbuilding deliveries; and the Partnership’s exposure to foreign currency fluctuations, particularly in Euros. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: the unit price of equity offerings to finance acquisitions, changes in production of LNG or LPG, either generally or in particular regions; required approvals by the conflicts committee of the board of directors of the Partnership’s general partner to acquire any LNG projects offered to the Partnership by Teekay; less than anticipated revenues or higher than anticipated costs or capital requirements; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the potential for early termination of long-term contracts and inability of the Partnership to renew or replace long-term contracts; LNG and LPG project delays, shipyard production delays; the Partnership’s ability to raise financing to purchase additional vessels or to pursue LNG or LPG projects; changes to the amount or proportion of revenues, expenses, or debt service costs denominated in foreign currencies; and other factors discussed in Teekay LNG’s filings from time to time with the SEC, including its Report on Form 20-F/A for the fiscal year ended December 31, 2007. The Partnership expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.