Teekay LNG Partners today launched the Teekay Multigas Pool, a new in-house commercial management structure for ethylene-capable liquefied petroleum gas (LPG) and small-scale liquefied natural gas (LNG) vessels.
The Teekay Multigas Pool is expected to bring the company’s seven directly-owned ethylene-capable LPG carriers, some of which are also capable of small-scale LNG shipping, under the new management structure. The pool fleet is expected to reach at least 12 vessels by the end of 2017, including third-party partner vessels.
The seven directly-owned ethylene-capable LPG carriers have been part of the Norgas Carriers Pool, operated by I.M Skaugen, and the transition of these vessels into the Teekay Multigas Pool will start immediately.
“This is the right time for Teekay LNG to bring commercial management of our seven ethylene-capable LPG carrier fleet in-house,” Mark Kremin, President and CEO of Teekay Gas Group said.
“We believe there are opportunities to consolidate the ethylene and small-scale LNG shipping sectors,” Kremin continued.
“We see this as fundamentally separate from our successful existing LPG joint venture with Exmar in the fully-refrigerated sector. The semi-refrigerated sector is at a low point in the cycle and we are establishing the Teekay Multigas Pool in readiness for the potential market upturn. The Teekay Multigas Pool is open for business.”