December 5, 2012
Image credit: Lloyd’s List *Teekay LNG will contribute approximately USD 140 million of equity and assume pro rata debt and lease obligations secured by certain vessels to be owned by the new LPG joint venture between Teekay and EXMAR. The worldwide gas energy market is rapidly developing. With its low cost, natural abundance and cleaner-burning properties, gas continues to gain market share over conventional oil and coal energy. To capitalize on this expanding gas market, Teekay LNG and EXMAR will create a new 50/50 joint venture (EXMAR LPG BVBA) that will operate in the Liquefied Petroleum Gas (LPG) Carrier segment. “New gas export projects scheduled to come on-line, combined with a relatively modest LPG carrier orderbook, are expected to result in strong demand for the current global LPG carrier fleet,” commented Peter Evensen, Teekay Corporation’s President and CEO. “In addition to providing potential upside from the attractive fundamentals in the LPG shipping market, this further diversifies Teekay LNG’s fixed-rate contract portfolio while leveraging EXMAR’s deep expertise as a leading owner and operator of medium-sized gas carriers.” EXMAR’s CEO Nicolas Saverys commented, “EXMAR is pleased to have Teekay LNG as a partner and rely on their extensive knowledge of the worldwide shipping markets to continue to grow the LPG and NH3 trade together. We share the same vision and strategy to grow the gas shipping trade and are excited about implementing our ideas as soon as possible.” Teekay LNG is already the third-largest independent operator of liquefied natural gas (LNG) vessels, and this transaction adds an exciting new element to Teekay’s successful operations in the world’s gas market. Learn more about the new joint venture in the official release. For more on Teekay LNG’s gas business, follow us on Facebook and Twitter, and visitwww.teekaylng.com.