Teekay Offshore’s Aframax newbuildings to be powered by LNG

Beothuk Spirit is part of Teekay Offshore’s shuttle fleet. Credit: Teekay Offshore
Beothuk Spirit is part of Teekay Offshore’s shuttle fleet. Credit: Teekay Offshore

Two Aframax shuttle tanker newbuildings on order with Teekay Offshore will be LNG-powered, the company announced in its second-quarter report.

In June, Vancouver-based Teekay Offshore said it had ordered two Aframaxes from South Korean shipyard Samsung Heavy Industries for USD239 million, but provided few additional details.

Ingvild Sæther, president and chief executive officer of Teekay Offshore, said the vessels would strengthen the firm’s position as the leading provider of contract of affreightment services in the North Sea, where the vessels will be based.

They are due to be delivered in late 2020 and 2021. Teekay Offshore also has another four vessels on order.

“Our customers require a reliable, long-term solution for securing offtake services from a large proportion of current and future production in the North Sea and these state-of-the-art newbuildings, together with our four existing newbuildings under construction, demonstrate our ongoing commitment to our shuttle tanker franchise and our customers,” Sæther said.

Teekay Offshore is a publicly traded master limited partnership with about 62 offshore assets, including floating production storage and offloading units; shuttle tankers, floating storage and offloading units; long-distance towing and offshore installation vessels; a floating accommodation unit; and conventional tankers.

Its fleet is mostly employed on medium-term, stable contracts.

Canadian investment fund Brookfield Business Partners holds a 51% interest in Teekay Offshore GP and appoints a majority of the members of its board of directors.