A Bemuda-based company has acquired two liquefied natural gas (LNG) vessels.

Teekay GP LLC will bought the Arctic Spirit and Polar Spirit, from Teekay Corporation for $230 million.

Teekay, the general partner of Teekay LNG Partners LP, expects to acquire the vessels on April 1 of this year and immediately charter the vessels back to Teekay for 10 years, plus options exercisable by Teekay to extend the charter up to an additional 15 years.

These charters are expected to generate approximately $27 million/year in operating cash flow to the partnership.

Teekay purchased the vessels last December from a joint venture of ConocoPhillips and Marathon Oil Corp. for $230 million and chartered the vessels back to the sellers until April 2009, with options to extend the charter up to an additional seven years.

Teekay was obligated to offer these vessels to Teekay LNG in accordance with the Omnibus agreement between the parties.