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Teekay LNG releases equity to fund Yamal LNG carrier newbuilds

18th July 2014

Teekay LNG has announced its plans for financing the building of six new LNG carriers in partnership with China LNG Shipping, bound for the Russia’s Yamal natural gas project

Teekay LNG releases equity to fund Yamal LNG carrier newbuilds
The funds will pay for a portion of five M-type, Electronically Controlled, Gas Injection (or MEGI) newbuilds

The Teekay LNG Partners L.P. (Teekay LNG) expects to use the proceeds to fund the equity portion of its first instalment payment of approximately USD 95m for six new-build liquefied natural gas (or LNG) carriers ordered by the partnership's 50/50 joint venture with China LNG Shipping (Holdings) Limited for the Yamal LNG Project.

The funds will pay for a portion of five M-type, Electronically Controlled, Gas Injection (or MEGI) newbuilds.

Pending application of the proceeds toward its MEGI newbuilds, the partnership will temporarily reduce indebtedness under one of its revolving credit facilities which is available for general partnership purposes.

Teekay LNG has agreed to sell 2,800,000 common units, which represent limited partner interests, in a public offering. Teekay LNG has granted the underwriters a 30-day option to purchase up to an additional 420,000 common units.

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