Teekay LNG Partners may trade its LNG floating storage unit, which is fixed to the Bahrain LNG terminal project, in the short-term shipping market.
Teekay LNG, which owns a 30% stake in the commissioned but not yet operational Bahrain LNG regasification facility, said this will depend on the import terminal's seasonal requirement for regasification services.
The New York-listed company said that, regardless of the deployment strategy for the FSU, Teekay LNG will continue to receive its full fixed-rate charter-hire for Bahrain Spirit from the terminal’s owner, Bahrain LNG.
The FSU last month delivered the last of a commissioning cargo to the land-based facilities for the terminal, which is located at Bin Salman Port.
Under the original schedule, the terminal had been due to start-up in 2018.
Financial results
Teekay’s gas-focused master limited partnership saw its adjusted net income rise to $50.3m in the fourth quarter 2019, up from $32.6m in the same three months of last year.
President and chief executive Mark Kremin said the company concluded its $3.5bn newbuilding programme late last year with the delivery of the last two of its six ice-breaking LNG carriers, which are fixed on long-term charters to the Yamal LNG project.
He said the ships were delivered around three months ahead of schedule, resulting in an extra three months' hire payments for the partnership.
Teekay received net cash proceeds after debt repayments of $100m in January after Awilco LNG fulfilled its obligation to repurchase the LNG carriers, Wilforce and Wilpride.
The company's presentation shows that the firm charter periods on three of its LNG carriers in which it holds 52% stakes — the 165,500-cbm vessels Methane Spirit, Arwa Spirit and Marib Spirit (all built 2008) — are due to expire this year.
The partnership logged a loss for its LPG carrier operations for the fourth quarter, but said its seven multi-gas carriers earned higher spot revenues during the period.
In October, the partnership sold its last remaining conventional tanker, the 40,000-dwt Alexander Spirit (built 2007), for net proceeds of $11.5m.
Teekay LNG Partners has interests ranging from 20% to 100% in 47 LNG carriers, 23 mid-size LPG ships and seven multi-gas vessels.
