Upcoming growth opportunities currently at sponsor level
Several newbuilding projects that are currently being warehoused by our sponsor, Teekay Corporation, provide visible opportunities for Teekay LNG fleet growth. This includes the following vessels that are expected to remain at Teekay Corporation until their delivery from the shipyard, at which time they will commence operations under their respective long-term fixed-rate contracts:
- Two multi-gas carriers which are expected to deliver in 2011 and will immediately commence long-term contracts with IM Skaugen. These vessels are capable of carrying LNG and LPG.
- A 33% interest in four newbuilding LNG carriers with 160,000 m3 of capacity, scheduled for delivery in 2011 and 2012. Upon delivery these vessels will commence a long-term contract with Angola LNG Supply Services, a consortium comprised of subsidiaries of Chevron, Sonangol, BP, Total and Eni.
In addition, Teekay LNG has agreed to purchase one LPG carrier which is scheduled to deliver in early 2011 when it will commence a long-term fixed-rate contract to IM Skaugen.
Point-to-point LNG transport market expected to increase
Although there have been few orders for new LNG carriers in the past 2-3 years, the pipeline of potential projects is beginning to build, most notably in Australia. Based on current planned projects, there is potential demand for over 100 new LNG carriers in the coming years. With a strong balance sheet, Teekay LNG has the capacity to take on new projects.
Industry consolidation of LNG transportation industry
Including projects currently warehoused by Teekay Corporation, Teekay LNG is the world's third-largest independent owner of LNG carriers and is well-positioned for consolidation opportunities which may arise as a result of smaller fleet owners focusing on conventional shipping or oil majors / utilities seeking to exit LNG shipping.
Growing demand for floating LNG solutions
Floating regasification is a growing part of the LNG industry since it allows prospective importers to gain fast and relatively cost efficient access to global LNG supply. Teekay LNG recently acquired a 50% interest in one floating storage and regasification unit (FSRU) on a long-term fixed-rate charter.