Bermuda-domiciled energy shipper Teekay LNG Partners has finalised agreements with a Chinese partner to provide six icebreaker liquefied natural gas (LNG) tankers for transporting gas from northern Siberia.

The company last night declared its second-quarter results, with distributable cash flow increasing 11 percent from the same period last year to $61.5 million.

The company is structured as a master limited partnership, which involves most profits being distributed to unit holders (shareholders) in the form of dividends.

Teekay LNG has agreed to ship Russian natural gas from the Yamal peninsula in northwestern Siberia to China.

“In June and July, we finalised two notable transactions that we have been working on for some time that will provide future distributable cash flow growth for the partnership and which highlight our new strategic relationships with China-based partners,” said Peter Evensen, chief executive officer of Teekay GP LLC, the general partner of Teekay LNG Partners.

“Through our new 50/50 joint venture with China LNG Shipping, we agreed to provide six icebreaker LNG carrier newbuildings for the Yamal LNG project which are scheduled to deliver in 2018 through 2020 and operate under fixed-rate contracts until 2045.

“And the partnership acquired ownership interests, together with two China-based energy and shipping companies and one international shipping company, in four LNG carrier newbuildings to be built in China.

“These LNG carriers are scheduled to deliver in 2017 through 2019 at which time they will commence 20-year fixed-rate charter contracts with BG Group. Together, these two transactions provide additional diversification of the partnership’s fixed-rate contract portfolio and increase its total forward fixed-rate revenues to approximately $11 billion, while also extending the remaining weighted-average contract duration for our LNG carrier fleet to approximately 14 years.

“Looking ahead, the addition of these new vessels will further complement the partnership’s existing pipeline of growth projects, which includes ten LPG carrier newbuildings, through our Exmar LPG joint venture, and five MEGI LNG carrier newbuildings, all scheduled for delivery between 2014 and 2018.”

Mr Evensen is bullish on the LNG shipping business.

“We continue to see strong long-term fundamentals for marine-based liquefied gas transportation, which is already creating new opportunities for LNG and LPG shipping,” he said.

“In the United States alone, the expected start-up of several LNG liquefaction projects from 2016 onwards is expected to create demand for over 80 additional LNG carriers. With a solid operating track record, a steadily expanding fleet of modern fuel-efficient vessels, and a strong financial foundation, we believe Teekay LNG is well-positioned for future growth.”