Teekay LNG Partners Orders Two LNG Newbuildings; Intends to Charter on Long-Term Contracts

HAMILTON, BERMUDA--(Marketwire - Dec. 13, 2012) -
Teekay LNG Partners L.P. (Teekay LNG or the
Partnership) (NYSE:TGP) today announced that it has
entered into an agreement with Daewoo Shipbuilding &
Marine Engineering CO., LTD., (DSME) of South Korea
for the construction of two 173,400 cubic meter
Liquefied Natural Gas (LNG) carrier newbuildings,
with options to order up to three additional vessels.
The Partnership intends to secure long-term contract
employment for both vessels prior to their delivery
in the first half of 2016. The newbuildings will be
constructed with M-type, Electronically Controlled,
Gas Injection (MEGI) twin engines, which are expected
to be significantly more fuel-efficient and have
lower emission levels than other engines currently
being utilized in LNG shipping.

The contract with DSME includes a favorable
installment payment schedule, with the majority of
the purchase price due upon delivery. The Partnership
intends to finance the installment payments during
construction with a portion of its existing
liquidity, which was approximately $420 million as of
September 30, 2012 (after deducting the equity
required to complete the recently announced Exmar LPG
joint venture acquisition), and expects to secure
long-term debt financing for the two vessels prior to
their scheduled delivery.

"The delivery of these vessels is timed to coincide
with the next wave of increased demand for LNG
carriers which is expected when a large number of new
LNG export projects come on-stream commencing from
late-2015. They are also among the largest LNG
carriers that will be able to transit the Panama
Canal after its expansion project is complete, which
makes them ideal for U.S. LNG exports following the
recent release of the U.S. Department of Energy study
which supported the export of LNG from the U.S.,"
commented Peter Evensen, Chief Executive Officer of
Teekay GP LLC. "In addition, we are confident these
newbuildings will be especially attractive to our
customers given their fuel-efficient engines as well
as being built to a high specification at DSME." Mr.
Evensen continued, "With scheduled delivery in 2016,
we believe that we are well-positioned to charter
these LNG newbuildings on fixed-rate charter
contracts prior to their delivery, thereby providing
Teekay LNG with visible built-in growth."

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is a publicly-traded master
limited partnership formed by Teekay Corporation
(NYSE:TK) as part of its strategy to expand its
operations in the LNG and LPG shipping sectors.
Teekay LNG Partners L.P. provides LNG, LPG and crude
oil marine transportation services primarily under
long-term, fixed-rate charter contracts with major
energy and utility companies through its fleet of 27
LNG carriers (including one LNG regasification unit),
five LPG/Multigas carriers and 11 conventional
tankers. Teekay LNG Partners' interests in these
vessels ranges from 33 to 100 percent. In addition,
Teekay LNG Partners has agreed in principal to
acquire a 50 percent interest in a new joint venture
with EXMAR NV, which will own and in-charter LPG
carriers and expects this transaction to close by
late-2012 or early-2013; and has entered into an
agreement for the construction of two LNG carrier
newbuildings from DSME of South Korea, which are
expected to be delivered in 2016. Teekay LNG Partners
L.P. is a publicly-traded master limited partnership
(MLP) formed by Teekay Corporation (NYSE:TK) as part
of its strategy to expand its operations in the LNG
and LPG shipping sectors.

Teekay LNG Partners' common units trade on the New
York Stock Exchange under the symbol "TGP".

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements (as
defined in Section 21E of the Securities Exchange Act
of 1934, as amended) which reflect management's
current views with respect to certain future events
and performance, including statements regarding: the
timing and certainty of completion of the
Partnership's two LNG carrier newbuildings; timing
and certainty of entering into long-term charter
contracts and long-term financing for the two LNG
newbuildings; the higher fuel-efficiency and lower
emissions levels associated with the MEGI engines;
the effect of the newbuildings on the Partnership's
fleet size and cash flows; the potential for the
Partnership to exercise its options to order up to
three additional newbuildings from DSME; and the
anticipated increase in demand for LNG shipping
commencing from late-2015 due to new LNG export
projects as well as potentially more exports of LNG
from the United States. The following factors are
among those that could cause actual results to differ
materially from the forward-looking statements, which
involve risks and uncertainties, and that should be
considered in evaluating any such statement: less
than anticipated revenues or higher than anticipated
costs or capital requirements related to the
newbuildings in which the Partnership has agreed to
construct; shipyard construction delays; increased
cost to construct the two LNG carriers; failure of
the MEGI engine to provide the expected efficiency
and emission specifications; failure by the
Partnership to secure charter contracts and/or
financing prior to the delivery for the two LNG
carrier newbuildings, and for any additional vessels
that the Partnership may order through exercise of
its newbuilding options; changes in production of
LNG, either generally or in particular regions that
would impact the expected future growth in the global
LNG transportation and regasification markets, and
spot LNG shipping rates; changes in trading patterns
or timing of the start-up of new LNG liquefaction
projects significantly impacting overall LNG shipping
requirements; changes in applicable industry laws and
regulations and the timing of implementation of new
laws and regulations; and other factors discussed in
Teekay LNG Partners' filings from time to time with
the SEC, including its Report on Form 20-F for the
fiscal year ended December 31, 2011. The Partnership
expressly disclaims any obligation to release
publicly any updates or revisions to any forward-
looking statements contained herein to reflect any
change in the Partnership's expectations with respect
thereto or any change in events, conditions or
circumstances on which any such statement is based.


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FOR FURTHER INFORMATION PLEASE CONTACT:

Teekay LNG Partners L.P.
Scott Gayton
Investor Relations Enquiries
+ 1 (604) 609-4740
www.teekaylng.com