Teekay LNG Partners led consortium has won a contract worth $655m from the Government of the Kingdom of Bahrain to develop a liquefied natural gas (LNG) receiving and regasification terminal in Bahrain.
Under the terms of the agreement, Teekay will work alongside Samsung C&T and Gulf Investment Corporation (GIC) to build and operate the terminal in Hidd Industrial area of Bahrain.
The project will leverage on Teekay LNG’s FSU vessel specifically modified for this project, through a 20-year time-charter to the joint venture.
Teekay LNG Peter Evensen said: "We are thrilled to partner with GIC, who has experience with infrastructure project development throughout the Gulf region, and with Samsung, who has developed LNG regasification terminals elsewhere in the world.
"In addition, we are excited to be able to dedicate and long-term charter one of our LNG carriers."
The 20-year agreement will see Bahrain LNG, a consortium constituted by Nogaholding, Teekay LNG, Samsung and GIC own and operate the terminal from July 2018.
Both Nogaholding and Teekay LNG will hold a stake of 30% each while Samsung and GIC will own 20%.
The terminal is expected to help Bahrain meet the increasing demand for gas supplies to satisfy its industrial and urban development.
The project will include a floating storage unit (FSU), an offshore LNG receiving jetty and breakwater, and an adjacent regasification platform.
Subsea pipelines will transport gas to an onshore receiving facility. The terminal will include an onshore nitrogen production facility.
Samsung CEO Shin Kim said: "It is a great honour to have remarkable sponsorships with GIC, a leading investor with extensive experience and insight in the GCC region and also with Teekay LNG, a world class LNG shipping company with the highest technical expertise required for the Project.
"We will do our best for the successful execution of the Project based on solid collaboration with our partners."