Teekay LNG Partners L.P. Exercises Options for Two Additional LNG Newbuildings

HAMILTON, BERMUDA--(Marketwired - July 26, 2013) -
Teekay LNG Partners L.P. (Teekay LNG or the
Partnership) (NYSE:TGP) today announced that during
the past week it has exercised two of its three
existing options 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 for delivery
in 2016. These two newbuilding LNG carriers are in
addition to the two LNG carriers Teekay LNG ordered
from DSME in December 2012, which have since secured
time-charter employment commencing upon delivery.
These newbuildings will also be constructed with the
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 Partnership intends to
secure long-term contract employment for both vessels
prior to their delivery in 2016. In connection with
the exercise of these two newbuilding options, the
Partnership secured further options from DSME which
will enable it to order up to five additional LNG
carrier newbuildings in the future.

The contract with DSME includes an installment
payment schedule similar to the two LNG carrier
newbuildings ordered from DSME in December 2012. The
Partnership intends to initially finance the
installment payments during construction using a
portion of its existing liquidity, and expects to
secure long-term debt financing for the two
newbuildings prior to their scheduled deliveries.

"The delivery of these two additional 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," commented Peter
Evensen, Chief Executive Officer of Teekay GP
LLC. "Our recently announced charter contracts with
Cheniere Energy for the first two MEGI LNG carrier
newbuildings, ordered in December 2012, are a good
example of the contract opportunities available in
the LNG shipping market and the attractiveness of
these vessels with the new fuel-efficient MEGI
engines. Given the strong fundamental outlook in LNG
shipping, combined with the optimized design of these
vessels, we are confident in our ability to secure
fixed-rate charter contracts for these additional two
newbuildings, which will provide Teekay LNG with
further visible built-in growth. Furthermore, the new
options we secured to order up to five additional LNG
carrier newbuildings should provide the Partnership
with a competitive advantage for the various LNG
projects we are pursuing."

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is the world's third largest
independent owner and operator of LNG vessels,
providing LNG, liquefied petroleum gas (LPG) and
crude oil marine transportation services primarily
under long-term, fixed-rate charter contracts with
major energy and utility companies through its
interests in 31 LNG carriers (including one LNG
regasification unit and four newbuildings), 29
LPG/Multigas carriers (including five chartered-in
LPG carriers and eight newbuildings) and 11
conventional tankers. The Partnership's interests in
these vessels ranges from 33 to 100 percent. 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 additional LNG carrier
newbuildings; timing and certainty of entering into
long-term charter contracts and long-term financing
for the two additional 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 competitive advantage to the Partnership
related to bidding on LNG projects as a result of
securing the options to order up to an additional
five LNG carrier newbuildings; 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 additional 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 additional LNG carrier
newbuildings; failure by the Partnership to secure
new LNG projects associated with the Partnership's
options to order up to five additional LNG carrier
newbuildings; 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, 2012. 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.


-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Teekay LNG Partners L.P.
Kent Alekson
Investor Relations Enquiries
+ 1 (604) 609-6442
www.teekaylng.com