Teekay and Exmar close LPG JV, order eight newbuildings

Brussels: Exmar and Teekay LNG Partners have successfully closed their 50/50 LPG joint venture and announced and order of up to eight midsize gas carriers with Hanjin Heavy Industries Corporation (HHIC).

The joint venture, Exmar LPG BVBA, controls one owned very large gas carrier and 15 owned midsize gas carriers (MCG), four of which are under construction at Hyundai Mipo. Time charters are also in place for three MCGs and two VLGCs (33.3% share), bareboat charters in one MGC and one VLGC round off the fleet.

Nordea and DNB co-arranged the $355m facility that finances the fleet, the oversubscribed syndicated loan facility is expected to close in Q1 2013.

The MCG order is firm for four vessels to be built at HHIC's Subic Bay yard in the Philippines with deliveries between April 2015 and June 2016.
Speaking at the announcement of the JV in December 2012, Peter Evensen, ceo of Teekay GP LLC commented, "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. In addition to providing potential upside from the attractive fundamentals in the LPG shipping market, this accretive transaction 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."

Nicolas Saverys, ceo of Exmar commented, "This transaction reflects a long-standing tradition of partnership with outstanding shipping peers. 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."

Posted 18 February 2013

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Marcus Hand

Editor, Seatrade Maritime News

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