Teekay LNG Partners and Exmar to Enter Into LPG Carrier Joint Venture
HAMILTON, BERMUDA, Dec 05, 2012 (Menafn - MARKETWIRE via COMTEX) --Teekay LNG Partners L.P. (Teekay LNG or the Partnership) TGP and EXMAR NV (EXMAR) (exm:BB) today announced an agreement inprinciple to create a new 50/50 joint venture which will operate inthe LPG Carrier segment with a primary focus on Midsize Gas Carriers.EXMAR and Teekay LNG seek to expand the joint venture by takingadvantage of the current and future demand for liquefied petroleumgas (LPG) and ammonia (NH3).
Transaction Summary
--EXMAR will contribute 16 owned LPG carriers to the new joint venture
company, to be named EXMAR LPG BVBA. The EXMAR LPG BVBA fleet will
include 15 owned Midsize Gas Carriers (MGC), of which four are under
construction at Hyundai Mipo, and one owned Very Large Gas Carrier
(VLGC). EXMAR LPG BVBA will also time-charter in three MGCs and two
VLGCs, and bareboat-charter in one MGC and one VLGC.
--Prior to this transaction, EXMAR LPG BVBA will acquire from Wah Kwong
the remaining 50 percent interest in two MGCs, the Brugge Venture and
the Touraine, which it does not already own.
--Teekay LNG will then acquire a 50 percent ownership in EXMAR LPG BVBA.
In exchange for its 50 percent interest in EXMAR LPG BVBA, 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 EXMAR LPG BVBA.
--EXMAR LPG BVBA has received a commitment from certain commercial lenders
to refinance the fleet in early-2013.
--EXMAR will continue to commercially and technically manage and operate
the vessels.
--It is the intention of EXMAR LPG BVBA to renew and grow the fleet and
discussions are already underway with various yards to secure additional
orders.
"New gas export projects scheduled to come on-line, combined with arelatively modest LPG carrier orderbook, are expected to result instrong demand for the current global LPG carrier fleet," commentedPeter Evensen, Chief Executive Officer of Teekay GP LLC. "In additionto providing potential upside from the attractive fundamentals in theLPG shipping market, this accretive transaction further diversifiesTeekay LNG's fixed-rate contract portfolio while leveraging EXMAR'sdeep expertise as a leading owner and operator of medium-sized gascarriers."
Nicolas Saverys, Chief Executive Officer of EXMAR N.V commented,"This transaction reflects a long-standing tradition of partnershipwith outstanding shipping peers. EXMAR is pleased to have Teekay LNGas a partner and rely on their extensive knowledge of the worldwideshipping markets to continue to grow the LPG and NH3 trade together.We share the same vision and strategy to grow the gas shipping tradeand are excited about implementing our ideas as soon as possible."
The proposed transaction, which is expected to close in late-2012 orearly-2013, has been approved by the Teekay LNG and EXMAR boards ofdirectors, and remains subject to customary closing conditions,including the completion of due diligence, vessel inspections anddocumentation.
The table below summarizes the vessels to be included in the EXMARLPG BVBA fleet:
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Year
VesselBuiltTypeCapacityOwnershipEmployment
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1.Hyundai Mipo2014Fully38,000OwnedN/A
No. 8121Refdwt
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2.Hyundai Mipo2014Fully38,000OwnedN/A
No. 8122Refdwt
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3.Hyundai Mipo2014Fully38,000OwnedN/A
No. 8123Refdwt
--------------------------------------------------------------------------
4.Hyundai Mipo2014Fully38,000OwnedN/A
No. 8124Refdwt
--------------------------------------------------------------------------
5.BW Kyoto2010Fully83,298Time-charter Spot (managed by
(33.33%)RefdwtinBW Gas)
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6.BW Tokyo2009Fully83,298Time-charter Spot (managed by
(33.33%)RefdwtinBW Gas)
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7.Libramont2006Fully38,455OwnedTime-charter
Refdwt
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8.Sombeke2006Fully38,447OwnedTime-charter
Refdwt
--------------------------------------------------------------------------
9.Antwerpen2005Fully35,233Time-charter Spot
Refdwtin
--------------------------------------------------------------------------
10. Eupen2005Fully38,961OwnedSpot / Contract
Refdwtof Affreightment
--------------------------------------------------------------------------
11. Odin2005Fully38,501Time-charter Spot / Contract
Refdwtinof Affreightment
--------------------------------------------------------------------------
12. Berlian2004Fully35,437Time-charter Contract of
EkuatorRefdwtinAffreightment
--------------------------------------------------------------------------
13. Bastogne2002Fully35,229OwnedSpot / Contract
Refdwtof Affreightment
--------------------------------------------------------------------------
14. Brugge1997Fully35,418OwnedTime-charter
VentureRefdwt
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15. Brussels1997Fully35,454Bareboat-Time-charter
Refdwtcharter in
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16. Flanders1996Fully84,270Bareboat-Time-charter
TenacityRefdwtcharter in
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17. Touraine1996Fully39,270OwnedTime-charter
Refdwt
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18. Eeklo1995Fully37,450OwnedTime-charter
Refdwt
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19. Kemira Gas1995Semi Ref 12,030OwnedTime-charter
dwt
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20. Temse1994Fully35,058OwnedSpot / Contract
Refdwtof Affreightment
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21. Flanders1993Fully85,826OwnedTime-charter
HarmonyRefdwt
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22. Courcheville1989Fully28,006OwnedTime-charter
Refdwt
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23. Donau1985Semi Ref 30,207OwnedTime-charter
dwt
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About Teekay LNG Partners L.P.
Teekay LNG Partners L.P. is a publicly-traded master limitedpartnership formed by Teekay Corporation TK as part of itsstrategy to expand its operations in the LNG and LPG shippingsectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oilmarine transportation services primarily under long-term, fixed-ratecharter contracts with major energy and utility companies through itsfleet of 27 LNG carriers (including one LNG regasification unit),five LPG/Multigas carriers and 11 conventional tankers. Teekay LNGPartners' interests in these vessels ranges from 33 to 100 percent.In addition, Teekay LNG Partners has agreed in principal to acquire a50 percent interest in a new joint venture with EXMAR which will ownand in-charter LPG carriers and expects this transaction to close bylate-2012 or early-2013. Teekay LNG Partners L.P. is apublicly-traded master limited partnership (MLP) formed by TeekayCorporation TK as part of its strategy to expand itsoperations in the LNG and LPG shipping sectors.
Teekay LNG Partners' common units trade on the New York StockExchange under the symbol "TGP".
About EXMAR NV
EXMAR NV, headquartered in Antwerp, Belgium, is a diversified andindependent shipping group serving the international gas and oilindustry. Apart from providing the ships for the transportation ofthese products, it also performs studies and undertakes themanagement of commercial, technical and administrative activities forthe oil and gas industry. EXMAR strives to create shareholder valueover the long term by balancing long- and short-term agreements tocounteract volatility in the freight market, combined with providingservices that are tailored to the needs of the customer.
EXMAR is quoted on Euronext Brussels (EXM).
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined inSection 21E of the Securities Exchange Act of 1934, as amended) whichreflect management's current views with respect to certain futureevents and performance, including statements regarding: the vesselscontributed by EXMAR to the EXMAR LPG BVBA joint venture; the timingand certainty of completion of EXMAR's acquisition of the 50 percentinterest in two MGCs, the Brugge Venture and the Touraine, which itdoes not already own; the timing, amount and certainty of completionof the Partnership's equity investment in the EXMAR LPG BVBA jointventure, and Teekay LNG's assumption of pro rata debt and capitallease obligations; timing and certainty of refinancing the EXMAR LPGBVBA fleet; the effect of the investment in EXMAR LPG BVBA on thePartnership's cash flows and diversity of its contract portfolio, andexpected accretion to the Partnership; the potential for EXMAR LPGBVBA to order additional LPG carrier newbuildings; volatility of spotmarket LPG and NH3 shipping rates; and LNG and LPG shipping marketfundamentals, including balance of supply and demand of LPG shippingcapacity and LPG shipping charter rates. The following factors areamong those that could cause actual results to differ materially fromthe forward-looking statements, which involve risks anduncertainties, and that should be considered in evaluating any suchstatement: less than anticipated revenues, higher than anticipatedcosts, higher than expected drydock expenses related to the LPGcarriers owned and in-chartered by EXMAR LPG BVBA; shipyardconstruction delays;
increased cost to construct the four Hyundai Mipo newbuilding LPGcarriers; the potential early termination of time-charter outcontracts and inability of the EXMAR LPG BVBA to renew or replace thetime-charter out contracts; failure by EXMAR to complete theacquisition of the remaining 50 percent interest in MGCs which itdoes not currently own; failure to satisfy the closing conditions ofthe transaction, including obtaining approvals from charterers andrelevant regulatory authorities; failure to complete the refinancingof the EXMAR LPG BVBA fleet in 2013; changes in production of LNG,LPG or NH3, either generally or in particular regions that wouldimpact the expected future growth in the global LPG transportationmarket and spot LPG and NH3 shipping rates; changes in tradingpatterns or timing of the start-up of new LNG liquefactionsignificantly impacting overall LPG and NH3 shipping requirements;changes in applicable industry laws and regulations and the timing ofimplementation of new laws and regulations; and changes to the amountor proportion of expenses denominated in foreign currencies; andother factors discussed in Teekay LNG Partners' filings from time totime with the SEC, including its Report on Form 20-F/A for the fiscalyear ended December 31, 2011. The Partnership expressly disclaims anyobligation to release publicly any updates or revisions to anyforward-looking statements contained herein to reflect any change inthe Partnership's expectations with respect thereto or any change inevents, conditions or circumstances on which any such statement isbased.
Contacts:
Teekay LNG Partners L.P.
Kent Alekson
Investor Relations Enquiries
1 (604) 609-6442
www.teekaylng.com
SOURCE: Teekay LNG Partners L.P.
http://www.teekaylng.com
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