ME-GI engines for two LNG tankers

14 Dec 2012
Teekay LNG is to add two more to its fleet of 27 LNG carriers

Teekay LNG is to add two more to its fleet of 27 LNG carriers

Teekay LNG Partners says that it has entered into an agreement with Daewoo Shipbuilding & Marine Engineering of South Korea for the construction of two 173,400m³ LNG carrier newbuildings, with options for three more.

The newbuildings will be constructed with twin-screw propulsion plants based on M-type, electronically controlled, gas injection (ME-GI) two-stroke engines, which are expected to be significantly more fuel-efficient and have lower emission levels than other engines currently being utilised in LNG tankers.

"The delivery of these vessels is timed to coincide with the next wave of increased demand for LNG carriers which is expected when a large number of new LNG export projects come on-stream commencing from late-2015. They are also among the largest LNG carriers that will be able to transit the Panama Canal after its expansion project is complete, which makes them ideal for US LNG exports. The recent US Department of Energy study supported the export of LNG from the US," commented Peter Evensen, CEO of Teekay. "In addition, we are confident these newbuildings will be especially attractive to our customers given their fuel-efficient engines as well as being built to a high specification at DSME. With scheduled delivery in 2016, we believe that we are well-positioned to charter these LNG newbuildings on fixed-rate charter contracts prior to their delivery, thereby providing Teekay LNG with visible built-in growth."

The contract with DSME includes a ‘favourable instalment’ payment schedule, with the majority of the purchase price due upon delivery, while the partnership intends to secure long-term contract employment for both vessels prior to their delivery in the first half of 2016.

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