Sponsorship by Teekay Corporation provides Teekay LNG Partners with numerous benefits.

Financial strength
Teekay Corporation has over $2.6 billion of consolidated total liquidity and has reduced its net debt at the parent company level. This provides Teekay Corporation with the ability and flexibility to support Teekay LNG in its growth, including the arrangement of transferrable debt facilities at favorable rates to finance assets dropped down to Teekay LNG and participation in Teekay LNG's follow-on equity offerings.

Operational excellence
As the majority shareholder, Teekay Corporation manages all Teekay LNG assets and operations, including its marine systems and standards.

Built-in growth opportunities
Our parent Teekay Corporation is currently constructing 4 newbuilding LNG carriers and 3 newbuilding LPG carriers that will be offered to the Partnership for purchase according to the terms of the omnibus agreement.

Incentive distribution rights
As the general partner of Teekay LNG, Teekay Corporation's interests are aligned with the limited partner unitholder interests through incentive distribution rights which provide Teekay Corporation with an increasing share of incremental distributable cash flow as Teekay LNG grows.