false--12-31FY20190001308106P15YP3Y0.66672300000665206000711758000600000700000500000890000089000000.560.560.710.140.100.160.120.110.120.100.140.230.100.110.110.120.210.100.46250.46250.300.20P20Y8M12D000.65000.53750.46250.65000.53750.41250.462520000000P1YP1YP1YP20YP21YP20YP5YP4YP20Y7940000077500000794000007750000064610001068800034200000228000002.252.132.252.132.252.13118000001190000011800000119000004269200014421000403030002310000023600000P2Y6M60200000703000005380000049700000601000007060000011540000060600000656000007110000012690000066878000109853000 0001308106 2019-01-01 2019-12-31 0001308106 dei:BusinessContactMember 2019-01-01 2019-12-31 0001308106 us-gaap:PreferredClassBMember 2019-12-31 0001308106 us-gaap:PreferredClassAMember 2019-12-31 0001308106 us-gaap:CommonClassAMember 2019-12-31 0001308106 us-gaap:CommonClassAMember 2019-01-01 2019-12-31 0001308106 us-gaap:PreferredClassAMember 2019-01-01 2019-12-31 0001308106 us-gaap:PreferredClassBMember 2019-01-01 2019-12-31 0001308106 2018-01-01 2018-12-31 0001308106 2017-01-01 2017-12-31 0001308106 us-gaap:InterestExpenseMember 2018-01-01 2018-12-31 0001308106 us-gaap:InterestExpenseMember 2019-01-01 2019-12-31 0001308106 us-gaap:InterestExpenseMember 2017-01-01 2017-12-31 0001308106 tgp:EquityIncomeMember 2017-01-01 2017-12-31 0001308106 tgp:EquityIncomeMember 2018-01-01 2018-12-31 0001308106 tgp:EquityIncomeMember 2019-01-01 2019-12-31 0001308106 2018-12-31 0001308106 2019-12-31 0001308106 2017-12-31 0001308106 2016-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-12-31 0001308106 us-gaap:SeriesAMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2018-01-01 0001308106 us-gaap:SeriesBMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2018-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2017-01-01 2017-12-31 0001308106 us-gaap:GeneralPartnerMember 2017-01-01 2017-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesAMember 2018-01-01 2018-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2019-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2016-12-31 0001308106 2018-01-01 0001308106 us-gaap:NoncontrollingInterestMember 2017-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2017-12-31 0001308106 us-gaap:SeriesAMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesAMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001308106 us-gaap:GeneralPartnerMember 2018-01-01 2018-12-31 0001308106 us-gaap:GeneralPartnerMember 2019-01-01 2019-12-31 0001308106 us-gaap:SeriesBMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:GeneralPartnerMember 2016-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001308106 us-gaap:SeriesBMember 2018-01-01 2018-12-31 0001308106 us-gaap:GeneralPartnerMember 2017-12-31 0001308106 2019-01-01 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesBMember us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:GeneralPartnerMember 2019-01-01 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2016-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2017-12-31 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2016-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2018-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2019-01-01 0001308106 us-gaap:SeriesAMember 2019-01-01 2019-12-31 0001308106 us-gaap:NoncontrollingInterestMember 2018-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:SeriesBMember 2017-01-01 2017-12-31 0001308106 us-gaap:GeneralPartnerMember 2018-12-31 0001308106 us-gaap:SeriesBMember 2019-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2018-01-01 0001308106 us-gaap:GeneralPartnerMember 2018-01-01 0001308106 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001308106 us-gaap:GeneralPartnerMember 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:CommonStockMember 2019-01-01 0001308106 us-gaap:SeriesAMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesBPreferredStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:SeriesAPreferredStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:SeriesAPreferredStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:SeriesBPreferredStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesBPreferredStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:SeriesAPreferredStockMember 2017-01-01 2017-12-31 0001308106 srt:MaximumMember tgp:DrydockingActivityMember 2019-01-01 2019-12-31 0001308106 tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:ConventionalTankersMember 2019-01-01 2019-12-31 0001308106 tgp:LiquefiedNaturalGasMember 2019-01-01 2019-12-31 0001308106 tgp:DrydockingActivityMember 2018-01-01 2018-12-31 0001308106 tgp:DrydockingActivityMember 2017-01-01 2017-12-31 0001308106 tgp:DrydockingActivityMember 2019-01-01 2019-12-31 0001308106 tgp:DrydockingActivityMember 2016-12-31 0001308106 tgp:DrydockingActivityMember 2017-12-31 0001308106 tgp:DrydockingActivityMember 2018-12-31 0001308106 tgp:DrydockingActivityMember 2019-12-31 0001308106 srt:MinimumMember tgp:DrydockingActivityMember 2019-01-01 2019-12-31 0001308106 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 0001308106 us-gaap:AccountingStandardsUpdate201712Member us-gaap:RetainedEarningsMember 2019-01-01 0001308106 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-12-31 0001308106 us-gaap:AccountingStandardsUpdate201409Member us-gaap:AccountsReceivableMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 0001308106 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001308106 us-gaap:AccountingStandardsUpdate201602Member 2019-12-31 0001308106 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 2018-12-31 0001308106 us-gaap:AccountingStandardsUpdate201602Member us-gaap:RetainedEarningsMember 2019-12-31 0001308106 us-gaap:AccountingStandardsUpdate201712Member 2019-01-01 0001308106 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-12-31 0001308106 us-gaap:AccountingStandardsUpdate201409Member 2018-12-31 0001308106 us-gaap:DerivativeMember 2019-12-31 0001308106 us-gaap:DerivativeMember 2018-12-31 0001308106 us-gaap:OtherContractMember 2018-12-31 0001308106 us-gaap:OtherContractMember 2019-01-01 2019-12-31 0001308106 us-gaap:OtherContractMember 2018-01-01 2018-12-31 0001308106 us-gaap:OtherContractMember 2019-12-31 0001308106 us-gaap:OtherContractMember 2017-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember tgp:PrivateMember 2019-12-31 0001308106 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CrossCurrencyInterestRateContractMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CrossCurrencyInterestRateContractMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember tgp:PrivateMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel3Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CrossCurrencyInterestRateContractMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember tgp:PublicMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel3Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CrossCurrencyInterestRateContractMember 2018-12-31 0001308106 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember tgp:PrivateMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember tgp:PublicMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember tgp:PublicMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel1Member us-gaap:CarryingReportedAmountFairValueDisclosureMember tgp:PublicMember 2018-12-31 0001308106 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember tgp:PrivateMember 2018-12-31 0001308106 us-gaap:PerformingFinancingReceivableMember us-gaap:InternalInvestmentGradeMember 2019-12-31 0001308106 us-gaap:PerformingFinancingReceivableMember us-gaap:PassMember 2018-12-31 0001308106 us-gaap:PerformingFinancingReceivableMember us-gaap:InternalInvestmentGradeMember 2018-12-31 0001308106 us-gaap:PerformingFinancingReceivableMember us-gaap:PassMember 2019-12-31 0001308106 tgp:ConventionalTankerSegmentMember 2019-12-31 0001308106 us-gaap:CorporateJointVentureMember tgp:LPGSegmentMember 2019-12-31 0001308106 tgp:LPGSegmentMember 2019-12-31 0001308106 us-gaap:CorporateJointVentureMember tgp:LNGSegmentMember 2019-12-31 0001308106 tgp:LNGSegmentMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ConventionalTankerSegmentMember 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LPGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LNGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ConventionalTankerSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LNGSegmentMember 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LPGSegmentMember 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LPGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LNGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ConventionalTankerSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:MaterialReconcilingItemsMember srt:AffiliatedEntityMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LPGSegmentMember 2019-12-31 0001308106 us-gaap:MaterialReconcilingItemsMember us-gaap:CashAndCashEquivalentsMember 2018-12-31 0001308106 us-gaap:MaterialReconcilingItemsMember srt:AffiliatedEntityMember 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ConventionalTankerSegmentMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LNGSegmentMember 2019-12-31 0001308106 us-gaap:MaterialReconcilingItemsMember us-gaap:CashAndCashEquivalentsMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:LNGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ConventionalTankerSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:RoyalDutchShellPlcMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001308106 tgp:TangguhProductionSharingContractorsMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001308106 tgp:RasLaffanLiquefiedNaturalGasCompanyLtdMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001308106 tgp:RasLaffanLiquefiedNaturalGasCompanyLtdMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001308106 tgp:RoyalDutchShellPlcMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001308106 tgp:CheniereMarketingInternationalLLPMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001308106 tgp:CheniereMarketingInternationalLLPMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001308106 tgp:CheniereMarketingInternationalLLPMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001308106 tgp:TangguhProductionSharingContractorsMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001308106 tgp:RasLaffanLiquefiedNaturalGasCompanyLtdMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001308106 tgp:RoyalDutchShellPlcMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001308106 tgp:NaturalEnergyGroupS.AMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001308106 tgp:NaturalEnergyGroupS.AMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-12-31 0001308106 tgp:NaturalEnergyGroupS.AMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001308106 tgp:TangguhProductionSharingContractorsMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001308106 tgp:LNGCarriersMember 2018-12-31 0001308106 tgp:LNGCarriersMember 2019-12-31 0001308106 tgp:SuezmaxTankersMember 2019-12-31 0001308106 tgp:SuezmaxTankersMember 2018-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2019-12-31 0001308106 tgp:LNGCarriersMember 2019-12-31 0001308106 tgp:LNGCarriersMember 2019-01-01 2019-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2018-01-01 2018-12-31 0001308106 srt:MaximumMember tgp:LNGCarriersMember 2016-02-01 2019-01-31 0001308106 tgp:SuezmaxTankersMember 2018-12-31 0001308106 us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-12-31 0001308106 tgp:LNGCarriersMember 2018-12-31 0001308106 tgp:LeaseComponentMember 2018-01-01 2018-12-31 0001308106 tgp:NonLeaseComponentMember 2019-01-01 2019-12-31 0001308106 tgp:TorbenSpiritMember tgp:September2019TransactionMember 2019-09-01 2019-09-30 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2018-09-30 0001308106 srt:MinimumMember tgp:LNGCarriersMember 2016-02-01 2019-01-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2019-04-01 2019-12-31 0001308106 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-12-31 0001308106 tgp:LeaseComponentMember 2019-01-01 2019-12-31 0001308106 tgp:NonLeaseComponentMember 2018-01-01 2018-12-31 0001308106 tgp:LNGCarriersMember 2018-01-01 2018-12-31 0001308106 tgp:NonLeaseComponentMember 2019-12-31 0001308106 tgp:LeaseComponentMember 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:ConventionalTankerSegmentMember 2018-01-01 2018-12-31 0001308106 tgp:BareboatchartersMember 2018-01-01 2018-12-31 0001308106 tgp:TimechartersMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:ConventionalTankerSegmentMember 2018-01-01 2018-12-31 0001308106 tgp:VoyagechartersMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LNGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LPGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LNGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LPGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:ConventionalTankerSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LPGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LPGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LNGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:ConventionalTankerSegmentMember 2018-01-01 2018-12-31 0001308106 tgp:ManagementfeesandotherMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LNGSegmentMember 2018-01-01 2018-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:ManagementfeesandotherMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LNGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LNGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:TimechartersMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:ConventionalTankerSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:BareboatchartersMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:ConventionalTankerSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LPGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:ConventionalTankerSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LNGSegmentMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LNGSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:VoyagechartersMember 2019-01-01 2019-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:ConventionalTankerSegmentMember 2019-01-01 2019-12-31 0001308106 tgp:ManagementfeesandotherMember tgp:NonLeaseComponentMember 2018-01-01 2018-12-31 0001308106 tgp:NonLeaseComponentMember 2017-01-01 2017-12-31 0001308106 tgp:NonleaserevenueMember tgp:NonLeaseComponentMember 2018-01-01 2018-12-31 0001308106 tgp:ManagementfeesandotherMember tgp:NonLeaseComponentMember 2019-01-01 2019-12-31 0001308106 tgp:ManagementfeesandotherMember tgp:NonLeaseComponentMember 2017-01-01 2017-12-31 0001308106 tgp:LeaseComponentMember 2017-01-01 2017-12-31 0001308106 tgp:NonleaserevenueMember tgp:NonLeaseComponentMember 2019-01-01 2019-12-31 0001308106 tgp:NonleaserevenueMember tgp:NonLeaseComponentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:ConventionalTankerSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LPGSegmentMember 2017-01-01 2017-12-31 0001308106 tgp:ManagementfeesandotherMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:ConventionalTankerSegmentMember 2017-01-01 2017-12-31 0001308106 tgp:BareboatchartersMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LNGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LPGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:TimechartersMember tgp:LNGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:ConventionalTankerSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:ConventionalTankerSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:BareboatchartersMember tgp:LPGSegmentMember 2017-01-01 2017-12-31 0001308106 tgp:TimechartersMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:ManagementfeesandotherMember tgp:LNGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LPGSegmentMember 2017-01-01 2017-12-31 0001308106 tgp:VoyagechartersMember 2017-01-01 2017-12-31 0001308106 us-gaap:OperatingSegmentsMember tgp:VoyagechartersMember tgp:LNGSegmentMember 2017-01-01 2017-12-31 0001308106 us-gaap:PropertyAvailableForOperatingLeaseMember 2019-12-31 0001308106 us-gaap:AssetsLeasedToOthersMember 2019-12-31 0001308106 tgp:TeekayTangguhJointVentureMember 2019-12-31 0001308106 us-gaap:AssetsLeasedToOthersMember 2018-12-31 0001308106 tgp:AwilcoLngCarrierMember 2013-01-01 2013-12-31 0001308106 tgp:TeekayTangguhJointVentureMember tgp:TeekayLngMember 2019-01-01 2019-12-31 0001308106 tgp:AwilcoLngCarrierMember 2019-10-31 0001308106 us-gaap:PropertyAvailableForOperatingLeaseMember 2018-12-31 0001308106 tgp:AwilcoLngCarrierMember srt:MaximumMember 2019-12-31 0001308106 tgp:AwilcoLngCarrierMember 2013-12-31 0001308106 tgp:AwilcoLngCarrierMember 2019-12-31 0001308106 tgp:AwilcoLngCarrierMember srt:MinimumMember 2019-12-31 0001308106 tgp:BahrainSpiritMember 2019-12-31 0001308106 srt:MinimumMember 2019-01-01 2019-12-31 0001308106 tgp:AwilcoLngCarrierMember 2013-01-01 2013-12-31 0001308106 tgp:AwilcoLngCarrierMember tgp:VesselOneMember 2013-12-31 0001308106 srt:MaximumMember 2019-01-01 2019-12-31 0001308106 tgp:AwilcoLngCarrierMember tgp:VesselTwoMember 2013-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2018-01-01 2018-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2019-01-01 2019-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2017-01-01 2017-12-31 0001308106 tgp:ExcaliburJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:ExcaliburJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:RasGas3JointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:BahrainLngJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:YamalLngJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:ExmarLPGJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:PanUnionJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:PanUnionJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:RasGas3JointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:BahrainLngJointVentureMember us-gaap:EquityMethodInvestmentsMember tgp:LngReceivingAndRegasificationTerminalMember 2019-12-31 0001308106 tgp:AngolaLNGJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:ExmarLPGJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:YamalLngJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 tgp:AngolaLNGJointVentureMember us-gaap:EquityMethodInvestmentsMember 2018-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember us-gaap:AssetUnderConstructionMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-01-01 2018-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2019-12-31 0001308106 tgp:ExmarNVMember tgp:ExcaliburJointVentureMember 2019-12-31 0001308106 tgp:AngolaLNGJointVentureMember 2018-12-31 0001308106 tgp:ExmarLPGJointVentureMember 2019-12-31 0001308106 tgp:ExmarNVMember tgp:ExmarLPGJointVentureMember 2019-12-31 0001308106 tgp:YamalLngJointVentureMember 2019-12-31 0001308106 tgp:AngolaLNGJointVentureMember 2019-12-31 0001308106 srt:MaximumMember tgp:BahrainLngJointVentureMember tgp:LngReceivingAndRegasificationTerminalMember 2015-12-01 2015-12-31 0001308106 tgp:YamalLngJointVentureMember tgp:LNGCarriersMember 2019-12-31 0001308106 tgp:ExcelsiorJointVentureMember 2018-01-31 2018-01-31 0001308106 tgp:MitsuiCo.LtdMember tgp:AngolaLNGJointVentureMember 2019-12-31 0001308106 tgp:ExmarNVMember tgp:ExcelsiorJointVentureMember 2019-12-31 0001308106 tgp:ExmarLPGJointVentureMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:ExcelsiorJointVentureMember 2019-01-01 2019-12-31 0001308106 tgp:NationalOilandGasAuthorityMember tgp:BahrainLngJointVentureMember 2015-12-31 0001308106 tgp:ExmarLPGJointVentureMember 2018-12-31 0001308106 tgp:QatarGasTransportCompanyLtdMember tgp:RasGas3JointVentureMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember 2015-12-31 0001308106 tgp:GulfInvestmentCorporationMember tgp:BahrainLngJointVentureMember 2015-12-31 0001308106 tgp:ExcaliburJointVentureMember 2019-12-31 0001308106 tgp:TeekayLngMember tgp:PanUnionJointVentureMember tgp:TwentyPercentOwnershipMember tgp:LNGCarriersMember us-gaap:SupplyCommitmentMember 2019-12-31 0001308106 tgp:ChinaLngMember tgp:YamalLngJointVentureMember 2019-12-31 0001308106 tgp:RasGas3JointVentureMember 2019-12-31 0001308106 tgp:SamsungMember tgp:BahrainLngJointVentureMember 2015-12-31 0001308106 tgp:BahrainLngJointVentureMember 2019-12-31 0001308106 tgp:AngolaLNGJointVentureMember 2019-01-01 2019-12-31 0001308106 tgp:PanUnionJointVentureMember tgp:ThirtyPercentOwnershipMember tgp:LNGCarriersMember us-gaap:SupplyCommitmentMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember 2018-12-31 0001308106 tgp:PanUnionJointVentureMember 2019-12-31 0001308106 tgp:ExcaliburJointVentureMember 2018-12-31 0001308106 tgp:NYKEnergyTransportMember tgp:AngolaLNGJointVentureMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember tgp:LngReceivingAndRegasificationTerminalMember 2015-12-31 0001308106 tgp:YamalLngJointVentureMember 2018-12-31 0001308106 tgp:BahrainLngJointVentureMember 2019-01-01 2019-12-31 0001308106 tgp:TeekayLngMember tgp:PanUnionJointVentureMember tgp:ThirtyPercentOwnershipMember tgp:LNGCarriersMember us-gaap:SupplyCommitmentMember 2019-12-31 0001308106 tgp:PanUnionJointVentureMember tgp:TwentyPercentOwnershipMember tgp:LNGCarriersMember us-gaap:SupplyCommitmentMember 2019-12-31 0001308106 tgp:PanUnionJointVentureMember 2018-12-31 0001308106 tgp:TeekayLngMarubeniJointVentureMember 2018-12-31 0001308106 tgp:BahrainLngJointVentureMember tgp:DaewooShipbuildingMember tgp:ModifiedVesselMember 2015-12-31 0001308106 srt:MaximumMember tgp:PanUnionJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 srt:MinimumMember tgp:PanUnionJointVentureMember us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:LNGSegmentMember 2018-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001308106 us-gaap:UnsecuredDebtMember 2018-12-31 0001308106 us-gaap:LongTermDebtMember 2018-12-31 0001308106 tgp:EuroDenominatedTermLoansMember 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001308106 us-gaap:UnsecuredDebtMember 2019-12-31 0001308106 us-gaap:LongTermDebtMember 2019-12-31 0001308106 us-gaap:NotesPayableOtherPayablesMember 2018-12-31 0001308106 tgp:EuroDenominatedTermLoansMember 2018-12-31 0001308106 us-gaap:NotesPayableOtherPayablesMember 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2020-03-31 0001308106 tgp:RequireMinimumVesselValueToOutstandingLoanPrincipalBalanceRatiosMember 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001308106 us-gaap:ForeignExchangeContractMember us-gaap:UnsecuredDebtMember 2019-12-31 0001308106 srt:MinimumMember us-gaap:ForeignExchangeContractMember us-gaap:UnsecuredDebtMember 2019-12-31 0001308106 tgp:LongTermDebt2Member us-gaap:TransportationEquipmentMember 2019-12-31 0001308106 srt:MinimumMember tgp:EuroDenominatedTermLoansMember tgp:EuroInterbankOfferedRateEuriborMember 2019-01-01 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember us-gaap:SubsequentEventMember 2020-03-24 0001308106 tgp:LongTermDebt1Member us-gaap:TransportationEquipmentMember 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2019-12-31 0001308106 tgp:LongTermDebt3Member tgp:RequireMinimumVesselValueToOutstandingLoanPrincipalBalanceRatiosMember 2019-12-31 0001308106 srt:MaximumMember tgp:EuroDenominatedTermLoansMember tgp:EuroInterbankOfferedRateEuriborMember 2019-01-01 2019-12-31 0001308106 srt:MaximumMember us-gaap:UnsecuredDebtMember exch:NIBR 2019-01-01 2019-12-31 0001308106 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:TeekayNakilatJointVentureMember tgp:QatarGasTransportCompanyLtdMember 2019-12-31 0001308106 tgp:TeekayNakilatJointVentureMember tgp:TeekayLngMember 2019-01-01 2019-12-31 0001308106 srt:MinimumMember us-gaap:LongTermDebtMember 2019-12-31 0001308106 srt:MinimumMember us-gaap:LongTermDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 us-gaap:MortgageBackedSecuritiesMember 2019-12-31 0001308106 srt:MinimumMember us-gaap:UnsecuredDebtMember exch:NIBR 2019-01-01 2019-12-31 0001308106 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 srt:MaximumMember us-gaap:LongTermDebtMember 2019-12-31 0001308106 srt:MaximumMember us-gaap:ForeignExchangeContractMember us-gaap:UnsecuredDebtMember 2019-12-31 0001308106 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2018-12-31 0001308106 tgp:TeekayNakilatJointVentureLoanMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:LongTermDebt3Member us-gaap:TransportationEquipmentMember 2019-12-31 0001308106 srt:MaximumMember us-gaap:LongTermDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:LongTermDebt2Member tgp:RequireMinimumVesselValueToOutstandingLoanPrincipalBalanceRatiosMember 2019-12-31 0001308106 tgp:LongTermDebt1Member tgp:RequireMinimumVesselValueToOutstandingLoanPrincipalBalanceRatiosMember 2019-12-31 0001308106 us-gaap:OtherAssetsMember 2019-12-31 0001308106 us-gaap:OtherAssetsMember 2018-12-31 0001308106 us-gaap:OtherNoncurrentLiabilitiesMember 2019-12-31 0001308106 us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0001308106 country:LU 2018-12-31 0001308106 country:ES 2019-12-31 0001308106 country:LU 2017-01-01 2019-12-31 0001308106 country:ES 2019-01-01 2019-12-31 0001308106 country:ES 2018-12-31 0001308106 country:LU 2019-12-31 0001308106 country:GB 2019-12-31 0001308106 country:GB 2018-12-31 0001308106 tgp:BahrainLngJointVentureMember srt:AffiliatedEntityMember 2017-01-01 2017-12-31 0001308106 srt:AffiliatedEntityMember 2018-12-31 0001308106 srt:AffiliatedEntityMember 2018-01-01 2018-12-31 0001308106 tgp:TeekayMarineSolutionsBermudaLtd.Member srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0001308106 tgp:LiquefiedNaturalGasMember us-gaap:AssetUnderConstructionMember srt:AffiliatedEntityMember 2017-01-01 2017-12-31 0001308106 tgp:LiquefiedNaturalGasMember us-gaap:AssetUnderConstructionMember srt:AffiliatedEntityMember 2018-01-01 2018-12-31 0001308106 srt:ParentCompanyMember srt:AffiliatedEntityMember 2018-12-31 0001308106 srt:AffiliatedEntityMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember srt:AffiliatedEntityMember 2018-01-01 2018-12-31 0001308106 tgp:TeekayCorporationMember 2019-12-01 2019-12-31 0001308106 tgp:TeekayMarineSolutionsBermudaLtd.Member srt:AffiliatedEntityMember 2017-01-01 2017-12-31 0001308106 tgp:LiquefiedNaturalGasMember us-gaap:AssetUnderConstructionMember srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0001308106 tgp:PanUnionJointVentureMember us-gaap:AssetUnderConstructionMember srt:AffiliatedEntityMember 2019-12-31 0001308106 srt:AffiliatedEntityMember us-gaap:EmployeeSeveranceMember 2019-01-01 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0001308106 tgp:TeekayMarineSolutionsBermudaLtd.Member srt:AffiliatedEntityMember 2018-01-01 2018-12-31 0001308106 srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0001308106 srt:AffiliatedEntityMember 2017-01-01 2017-12-31 0001308106 srt:AffiliatedEntityMember us-gaap:EmployeeSeveranceMember 2017-01-01 2017-12-31 0001308106 srt:AffiliatedEntityMember us-gaap:EmployeeSeveranceMember 2018-01-01 2018-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsFiveMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsOneMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsThreeMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsOneMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsTwoMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsFiveMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsFourMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 us-gaap:InterestRateSwapMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsFourMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsTwoMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:UnitedStatesDollarDenominatedInterestRateSwapsThreeMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-01-01 2019-12-31 0001308106 tgp:EuroDenominatedInterestRateSwapsMember tgp:EuroInterbankOfferedRateEuriborMember 2019-12-31 0001308106 tgp:EuroDenominatedInterestRateSwapsMember tgp:EuroInterbankOfferedRateEuriborMember 2019-01-01 2019-12-31 0001308106 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-12-31 0001308106 tgp:CrossCurrencyInterestRateContractTerminationMember us-gaap:ForeignCurrencyGainLossMember 2018-01-01 2018-12-31 0001308106 us-gaap:CurrencySwapMember us-gaap:ForeignCurrencyGainLossMember 2017-01-01 2017-12-31 0001308106 us-gaap:CurrencySwapMember us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-12-31 0001308106 tgp:CrossCurrencyInterestRateContractTerminationMember us-gaap:ForeignCurrencyGainLossMember 2019-01-01 2019-12-31 0001308106 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:ForeignCurrencyGainLossMember 2018-01-01 2018-12-31 0001308106 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:ForeignCurrencyGainLossMember 2017-01-01 2017-12-31 0001308106 tgp:CrossCurrencyInterestRateContractTerminationMember us-gaap:ForeignCurrencyGainLossMember 2017-01-01 2017-12-31 0001308106 us-gaap:CurrencySwapMember us-gaap:ForeignCurrencyGainLossMember 2018-01-01 2018-12-31 0001308106 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2019-12-31 0001308106 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001308106 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2018-12-31 0001308106 us-gaap:ForeignExchangeForwardMember 2019-12-31 0001308106 us-gaap:CurrencySwapMember 2019-12-31 0001308106 us-gaap:CurrencySwapMember 2018-12-31 0001308106 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001308106 us-gaap:InterestRateSwapMember 2017-01-01 2017-12-31 0001308106 us-gaap:OtherContractMember 2017-01-01 2017-12-31 0001308106 us-gaap:InterestRateSwaptionMember 2017-01-01 2017-12-31 0001308106 us-gaap:ForeignExchangeForwardMember 2019-01-01 2019-12-31 0001308106 us-gaap:ForeignExchangeForwardMember 2018-01-01 2018-12-31 0001308106 tgp:InterestRateSwapsTerminatedMember 2018-01-01 2018-12-31 0001308106 us-gaap:InterestRateSwapMember 2019-01-01 2019-12-31 0001308106 us-gaap:InterestRateSwaptionMember 2019-01-01 2019-12-31 0001308106 tgp:InterestRateSwapsTerminatedMember 2017-01-01 2017-12-31 0001308106 tgp:InterestRateSwapsTerminatedMember 2019-01-01 2019-12-31 0001308106 us-gaap:InterestRateSwapMember 2018-01-01 2018-12-31 0001308106 us-gaap:InterestRateSwaptionMember 2018-01-01 2018-12-31 0001308106 us-gaap:ForeignExchangeForwardMember 2017-01-01 2017-12-31 0001308106 tgp:FourPointSixtyPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-12-31 0001308106 tgp:ThreePointSeventyPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-12-31 0001308106 tgp:FourPointSixtyPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-01-01 2019-12-31 0001308106 tgp:SixPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-12-31 0001308106 tgp:ThreePointSeventyPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-01-01 2019-12-31 0001308106 us-gaap:CrossCurrencyInterestRateContractMember 2019-12-31 0001308106 tgp:SixPercentMarginMember us-gaap:CrossCurrencyInterestRateContractMember exch:NIBR 2019-01-01 2019-12-31 0001308106 tgp:TeekayTangguhJointVentureMember 2019-12-31 0001308106 tgp:HeadLeaseReceiptsMember 2019-12-31 0001308106 tgp:BahrainLngJointVentureMember tgp:LngReceivingAndRegasificationTerminalMember 2019-12-31 0001308106 tgp:TeekayTangguhJointVentureMember tgp:SettlementProposalWithHMRCRelatedToDeductibilityOfCertainRelatedPartyTransactionsIn2010Member 2017-01-01 2017-12-31 0001308106 tgp:SubleasePaymentsMember 2019-12-31 0001308106 tgp:TeekayNakilatJointVentureMember 2018-01-01 2018-12-31 0001308106 tgp:TeekayTangguhJointVentureMember tgp:SettlementProposalWithHMRCRelatedToDeductibilityOfCertainRelatedPartyTransactionsIn2010Member 2017-01-01 2017-12-31 0001308106 tgp:HeadLeaseReceiptsMember 2018-12-31 0001308106 us-gaap:ConsolidatedEntitiesMember 2019-12-31 0001308106 us-gaap:ConsolidatedEntitiesMember 2019-06-01 2019-06-30 0001308106 tgp:TeekayTangguhJointVentureMember 2018-12-31 0001308106 tgp:TeekayNakilatJointVentureMember 2019-12-31 0001308106 tgp:TeekayNakilatJointVentureMember 2018-12-31 0001308106 tgp:TeekayTangguhJointVentureMember 2019-12-31 0001308106 tgp:TeekayTangguhJointVentureMember tgp:TeekayLngMember tgp:SettlementProposalWithHMRCRelatedToDeductibilityOfCertainRelatedPartyTransactionsIn2010Member 2017-01-01 2017-12-31 0001308106 us-gaap:EquityMethodInvestmentsMember 2019-12-31 0001308106 tgp:SkaugenGulfPetchemCarriersB.S.CMember 2017-01-01 2017-12-31 0001308106 tgp:BahrainLngJointVentureMember 2019-11-14 2019-11-14 0001308106 tgp:BahrainLngJointVentureMember 2019-11-14 0001308106 tgp:SuffunBahrainW.L.L.Member tgp:SkaugenGulfPetchemCarriersB.S.CMember 2017-01-01 2017-12-31 0001308106 tgp:I.M.SkaugenSEMember tgp:SkaugenGulfPetchemCarriersB.S.CMember 2017-12-31 0001308106 tgp:I.M.SkaugenSEMember tgp:SkaugenGulfPetchemCarriersB.S.CMember 2017-01-01 2017-12-31 0001308106 tgp:TheOilGasHoldingCompanyB.S.C.Member tgp:SkaugenGulfPetchemCarriersB.S.CMember 2017-01-01 2017-12-31 0001308106 us-gaap:SeriesBPreferredStockMember 2017-10-23 0001308106 us-gaap:SeriesBPreferredStockMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-10-23 0001308106 us-gaap:SeriesBPreferredStockMember 2017-10-23 2017-10-23 0001308106 us-gaap:RepurchaseAgreementsMember 2018-12-31 0001308106 tgp:TeekayCorporationMember tgp:PublicMember 2019-01-01 2019-12-31 0001308106 srt:ParentCompanyMember tgp:TeekayCorporationMember 2019-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:PreferredStockMember 2017-01-01 2017-12-31 0001308106 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:PreferredStockMember 2017-10-01 2017-10-31 0001308106 us-gaap:PreferredStockMember 2017-10-31 0001308106 us-gaap:LimitedPartnerMember 2019-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2018-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001308106 us-gaap:LimitedPartnerMember us-gaap:RepurchaseAgreementsMember us-gaap:CommonStockMember 2018-01-01 2019-12-31 0001308106 srt:MaximumMember tgp:LevelFourMember 2019-01-01 2019-12-31 0001308106 srt:MinimumMember tgp:LevelFiveMember 2019-01-01 2019-12-31 0001308106 srt:MaximumMember tgp:LevelsTwoMember 2019-01-01 2019-12-31 0001308106 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001308106 srt:MinimumMember tgp:LevelFourMember 2019-01-01 2019-12-31 0001308106 srt:MaximumMember tgp:LevelThreeMember 2019-01-01 2019-12-31 0001308106 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001308106 srt:MinimumMember tgp:LevelOneMember 2019-01-01 2019-12-31 0001308106 srt:MinimumMember tgp:LevelThreeMember 2019-01-01 2019-12-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2019-03-01 2019-03-31 0001308106 tgp:NonManagementDirectorMember 2018-01-01 2018-12-31 0001308106 tgp:NonManagementDirectorMember 2019-03-01 2019-03-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2017-01-01 2017-12-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2018-03-01 2018-03-31 0001308106 tgp:NonManagementDirectorMember 2017-01-01 2017-12-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2017-03-01 2017-03-31 0001308106 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0001308106 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-12-31 0001308106 us-gaap:EmployeeSeveranceMember 2018-12-31 0001308106 us-gaap:EmployeeSeveranceMember 2019-12-31 0001308106 us-gaap:EmployeeSeveranceMember 2018-01-01 2018-12-31 0001308106 tgp:EuropeanSpiritMember 2017-01-01 2017-12-31 0001308106 tgp:AlexanderSpiritMember 2019-10-01 2019-10-31 0001308106 tgp:TeideSpiritandToledoSpiritMember 2017-01-01 2017-12-31 0001308106 tgp:AfricanSpiritMember 2018-10-01 2018-10-31 0001308106 tgp:AfricanSpiritMember 2017-01-01 2017-12-31 0001308106 tgp:NapaSpiritPanSpiritCamillaSpiritandCathinkaSpiritMember 2018-01-01 2018-12-31 0001308106 tgp:AfricanSpiritMember 2018-01-01 2018-12-31 0001308106 tgp:EuropeanSpiritMember 2018-01-01 2018-12-31 0001308106 tgp:AlexanderSpiritMember 2018-01-01 2018-12-31 0001308106 tgp:AlexanderSpiritMember 2019-01-01 2019-12-31 0001308106 tgp:TeideSpiritandToledoSpiritMember 2017-08-01 2017-08-31 0001308106 tgp:EuropeanSpiritMember 2017-06-01 2017-06-30 0001308106 tgp:AfricanSpiritMember 2017-08-01 2017-08-31 0001308106 us-gaap:SubsequentEventMember 2020-01-01 2020-04-01 0001308106 tgp:WilPrideAndWilForceLNGCarriersMember us-gaap:SubsequentEventMember 2020-01-07 0001308106 tgp:AwilcoLngCarrierMember us-gaap:SubsequentEventMember 2020-01-07 2020-01-07 iso4217:USD xbrli:shares iso4217:USD tgp:vessel xbrli:shares utreg:ft3 tgp:subsidiary tgp:contract tgp:terminal tgp:credit_facility iso4217:NOK utreg:m3 tgp:term_loan tgp:Subsidiaries iso4217:EUR xbrli:pure tgp:lease


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 _______________________________ 
FORM 20-F
  _______________________________  
(Mark One)
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
SHELL COMPANY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report                 
For the transition period from                      to                     
Commission file number 1-32479
  _______________________________ 
TEEKAY LNG PARTNERS L.P.
(Exact name of Registrant as specified in its charter)
  _______________________________ 
Republic of The Marshall Islands
(Jurisdiction of incorporation or organization)
4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda
Telephone: (441) 298-2530
(Address and telephone number of principal executive offices)




Anne Liversedge
4th Floor, Belvedere Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda
Telephone: (441298-2530
Fax: (441) 292-3931
(Contact information for company contact person)

Securities registered, or to be registered, pursuant to Section 12(b) of the Act.
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Units
TGP
New York Stock Exchange
Series A Preferred Units
TGP PR A
New York Stock Exchange
Series B Preferred Units
TGP PR B
New York Stock Exchange
Securities registered, or to be registered, pursuant to Section 12(g) of the Act.
None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
  _______________________________ 
Indicate the number of outstanding shares of each issuer’s classes of capital or common stock as of the close of the period covered by the annual report.    
77,509,339 Common Units
5,000,000 Series A Preferred Units
6,800,000 Series B Preferred Units


Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes   ¨    No   ý
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes  ¨    No  ý
Indicate by check mark if the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark if the registrant (1) has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
ý
Accelerated Filer
¨
Non-Accelerated Filer
¨
Emerging growth company
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:




U.S. GAAP
ý
International Financial Reporting Standards
as issued by the International Accounting
Standards Board
¨
Other
¨
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:
Item 17  ¨        Item 18   ¨
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes          No  ý
 




TEEKAY LNG PARTNERS L.P.
INDEX TO REPORT ON FORM 20-F
 
 
Page
 
 
Item 1.
Item 2.
Item 3.
 
 
Item 4.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 4A.
Item 5.
 
 
 
 
 
 
 
 
 
 
 
Item 6.
 
 
 
 
 
 
 
 
 
Item 7.
 

1



 
Item 8.
 
 
 
 
 
Item 9.
Item 10.
 
 
 
 
 
 
 
Item 11.
Item 12.
 
 
 
 
 
Item 13.
Item 14.
Item 15.
Item 16A.
Item 16B.
Item 16C.
Item 16D.
Item 16E.
Item 16F.
Item 16G.
Item 16H.
 
 
 
 
 
Item 17.
Item 18.
Item 19.
 

2




PART I
This Annual Report should be read in conjunction with the consolidated financial statements and accompanying notes included in this report.

Unless otherwise indicated, references in this Annual Report to “Teekay LNG Partners,” “we,” “us” and “our” and similar terms refer to Teekay LNG Partners L.P. and/or one or more of its subsidiaries, except that those terms, when used in this Annual Report in connection with the common or preferred units described herein, shall mean specifically Teekay LNG Partners L.P. References in this Annual Report to “Teekay Corporation” refer to Teekay Corporation and/or any one or more of its subsidiaries.

In addition to historical information, this Annual Report contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements relate to future events and our operations, objectives, expectations, performance, financial condition and intentions. When used in this Annual Report, the words “expect,” “intend,” “plan,” “believe,” “anticipate,” “estimate” and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this Annual Report include, in particular, statements regarding:
 
our distribution policy and our ability to make cash distributions on our units or any increases in quarterly distributions, and the impact of cash distribution reductions on our financial position;
our future financial condition and results of operations and our future revenues, expenses and capital expenditures, and our expected financial flexibility to pursue capital expenditures, acquisitions and other expansion opportunities, including vessel acquisitions;
our liquidity needs and meeting our going concern requirements, including our anticipated funds and sources of financing for liquidity and working capital needs and the sufficiency of cash flows, and our estimation that we will have sufficient liquidity for at least a one-year period;
our ability to obtain financing, including new bank financings, and to refinance existing indebtedness;
the expected timing, amounts and methods of financing for new projects;
the expected scope, duration and effects of the novel coronavirus pandemic, and the consequences of any future epidemic or pandemic crises;    
growth prospects and future trends of the markets in which we operate;
our expectations regarding demand in the gas industry;
liquefied natural gas (or LNG) and liquefied petroleum gas (or LPG) market fundamentals, including the balance of supply and demand in the LNG and LPG markets, estimated growth in size of the world LNG and LPG fleets and spot LNG and LPG charter rates;
our expectations as to the useful lives of our vessels;
our expectations and estimates regarding future charter business, including with respect to minimum charter hire payments, revenues and our vessels’ ability to perform to specifications and maintain their hire rates in the future;
our expectations regarding the ability of our customers to make charter payments to us;
our ability to maximize the use of our vessels, including the redeployment or disposition of vessels no longer under long-term charter or whose charter contract is expiring in 2020 and 2021;
the adequacy of our insurance coverage, less an applicable deductible;
the expected future resumption of the LNG plant in Yemen operated by Yemen LNG Company Limited (or YLNG) and the expected repayment of deferred hire amounts on our two 52%-owned vessels, the Marib Spirit and Arwa Spirit;
the expected technical and operational capabilities of the M-type, Electronically Controlled, Gas Injection (or MEGI) twin engines in certain LNG carriers and expectations on improving performance on certain vessels where additional equipment will be installed to lower fuel consumption;
our ability to continue to derive a significant portion of our revenues and cash flow from a limited number of customers;
our ability to maintain long-term relationships with major LNG and LPG importers and exporters;
our ability to leverage to our advantage Teekay Corporation’s relationships and reputation in the shipping industry;
our continued ability to enter into long-term, fixed-rate time-charters with our LNG and LPG customers;
obtaining LNG and LPG projects that we or Teekay Corporation bid on;
our expectations regarding the timing and schedule for completion of the receiving and regasification terminal in Bahrain in accordance with all necessary conditions, requirements and applicable consents, which will be owned and operated by Bahrain LNG W.L.L., a joint venture owned by us (30%), National Oil & Gas Authority (or NOGA) (30%), Gulf Investment Corporation (or GIC) (24%) and Samsung C&T (or Samsung) (16%) (or the Bahrain LNG Joint Venture), as well as the current and future performance of the terminal (including

3



assumptions concerning its operational status) and our expectation of continued receipt of terminal use payments from the customer under its long-term contract;
our ability to obtain all permits, licenses, and certificates with respect to the conduct of our operations;
the impact and expected cost of, and our ability and plans to comply with, new and existing governmental regulations and maritime self-regulatory organization standards applicable to our business, including the expected cost to install ballast water treatment systems on our vessels and the switch to burning low sulfur fuel in compliance with the International Marine Organization (or IMO) proposals and the effect of IMO 2020, a new regulation for a 0.50% global sulfur cap for marine fuels effective January 1, 2020;
the expected impact of heightened environmental and quality concerns of insurance underwriters, regulators and charterers;
the expected impact of the adoption of the "Poseidon Principles" by financial institutions;
the future valuation or impairment of our assets, including goodwill;
our hedging activities relating to foreign exchange, interest rate and spot market risks, and the effects of fluctuations in foreign exchange, interest rate and spot market rates on our business and results of operations;
the expected timing of the transition away from the use of the London Inter-bank Offered Rate (or LIBOR) and the consequences relating to such transition;
the potential impact of new accounting standards guidance;
our and Teekay Corporation’s ability to maintain good relationships with the labor unions who work with us; and
our business strategy and other plans and objectives for future operations.

Forward-looking statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to, those factors discussed in “Item 3 – Key Information: Risk Factors,” and other factors detailed from time to time in other reports we file with or furnish to the U.S. Securities and Exchange Commission (or the SEC).

We do not intend to revise any forward-looking statements in order to reflect any change in our expectations or events or circumstances that may subsequently arise. You should carefully review and consider the various disclosures included in this Annual Report and in our other filings made with the SEC that attempt to advise interested parties of the risks and factors that may affect our business prospects and results of operations.
Item 1.
Identity of Directors, Senior Management and Advisers
Not applicable.
Item 2.Offer Statistics and Expected Timetable
Not applicable.
Item 3.Key Information
Selected Financial Data
Set forth below is selected consolidated financial and other data of Teekay LNG Partners and its subsidiaries for the fiscal years 2015 through 2019, which have been derived from our consolidated financial statements. The following table should be read together with, and is qualified in its entirety by reference to, (a) “Item 5 – Operating and Financial Review and Prospects,” included herein, and (b) the historical consolidated financial statements and the accompanying notes and the Report of Independent Registered Public Accounting Firm therein (which are included herein), with respect to the consolidated financial statements for the years ended December 31, 2019, 2018 and 2017.

Our consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (or GAAP).


4



(in thousands of U.S. Dollars, except unit, per unit and fleet data)
 
Year Ended
December 31,
2019
$
 
Year Ended
December 31,
2018
$
 
Year Ended
December 31,
2017
$
 
Year Ended
December 31,
2016
$
 
Year Ended
December 31,
2015
$
Income Statement Data:
 
 
 
 
 
 
 
 
 
 
Voyage revenues
 
601,256

 
510,762

 
432,676

 
396,444

 
397,991

Income from vessel operations(1)
 
299,253


147,809


148,649


153,181

 
181,372

Equity income(2)
 
58,819

 
53,546

 
9,789

 
62,307

 
84,171

Interest expense
 
(164,521
)
 
(128,303
)
 
(80,937
)
 
(58,844
)
 
(43,259
)
Interest income
 
3,985

 
3,760

 
2,915

 
2,583

 
2,501

Realized and unrealized (loss) gain on non-designated derivative instruments(3)
 
(13,361
)
 
3,278

 
(5,309
)
 
(7,161
)
 
(20,022
)
Foreign currency exchange (loss) gain(4)
 
(9,640
)
 
1,371

 
(26,933
)
 
5,335

 
13,943

Other (expense) income(5)
 
(2,454
)
 
(51,373
)
 
1,561

 
1,537

 
1,526

Income tax expense
 
(7,477
)
 
(3,213
)
 
(824
)
 
(973
)
 
(2,722
)
Net income
 
164,604


26,875


48,911


157,965

 
217,510

Non-controlling and other interests in net income
 
40,058

 
24,260

 
29,325

 
22,988

 
42,903

Limited partners’ interest in net income
 
124,546

 
2,615

 
19,586

 
134,977

 
174,607

Limited partners’ interest in net income per:
 
 
 
 
 
 
 
 
 
 
Common unit - basic
 
1.59

 
0.03

 
0.25

 
1.70

 
2.21

Common unit - diluted
 
1.59

 
0.03

 
0.25

 
1.69

 
2.21

Cash distributions declared per common unit
 
0.71

 
0.56

 
0.56

 
0.56

 
2.80

Balance Sheet Data (at end of period):
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
160,221

 
149,014

 
244,241

 
126,146

 
102,481

Restricted cash
 
93,070

 
73,850

 
95,194

 
117,027

 
111,519

Vessels and equipment(6)
 
3,061,499

 
3,329,523

 
2,905,712

 
2,215,983

 
2,108,160

Investment in and advances to equity-accounted joint ventures
 
1,155,316

 
1,116,133

 
1,094,596

 
1,037,726

 
883,731

Net investments in direct financing and sales-type leases(7)
 
818,809

 
575,163

 
495,990

 
643,008

 
666,658

Total assets
 
5,409,686

 
5,384,781

 
5,019,299

 
4,315,474

 
4,052,980

Total debt(8)
 
3,242,300

 
3,268,332

 
2,809,541

 
2,184,065

 
2,058,336

Partners’ equity
 
1,821,686

 
1,833,254

 
1,879,038

 
1,738,506

 
1,519,062

Total equity
 
1,876,975

 
1,882,597

 
1,931,423

 
1,777,412

 
1,543,679

Common units outstanding
 
77,509,339

 
79,360,719

 
79,626,819

 
79,571,820

 
79,551,012

Preferred units outstanding
 
11,800,000

 
11,800,000

 
11,800,000

 
5,000,000

 

Other Financial Data:
 
 
 
 
 
 
 
 
 
 
Net voyage revenues(9)
 
579,869

 
482,525

 
424,474

 
394,788

 
396,845

EBITDA(10)
 
469,382

 
279,009

 
233,302

 
310,741

 
353,243

Adjusted EBITDA(10)
 
684,667


515,292


449,550


480,063


473,965

Capital expenditures:
 
 
 
 
 
 
 
 
 
 
Expenditures for vessels and equipment(11)
 
102,590

 
686,305

 
714,529

 
344,987

 
191,969

Liquefied Natural Gas Fleet Data:
 
 
 
 
 
 
 
 
 
 
Consolidated:
 
 
 
 
 
 
 
 
 
 
Calendar-ship-days(12)
 
9,095

 
7,570

 
5,912

 
5,244

 
4,745

Average age of our fleet (in years at end of year)
 
8.4

 
7.8

 
8.9

 
9.7

 
10.2

Vessels at end of year(13)
 
24

 
23

 
18

 
15

 
13

Equity-Accounted:(14)
 
 
 
 
 
 
 
 
 
 
Calendar-ship-days(12)
 
8,095

 
6,912

 
5,920

 
5,840

 
5,840

Average age of our fleet (in years at end of year)
 
6.4

 
7.0

 
8.0

 
7.5

 
6.5

Vessels at end of year(13)
 
25

 
20

 
17

 
16

 
16

Liquefied Petroleum Gas Fleet Data:
 
 
 
 
 
 
 
 
 
 
Consolidated:
 
 
 
 
 
 
 
 
 
 
Calendar-ship-days(12)
 
2,555

 
2,555

 
2,445

 
2,196

 
2,190

Average age of our fleet (in years at end of year)
 
10.9

 
9.9

 
8.9

 
7.0

 
6.0

Vessels at end of year(13)
 
7

 
7

 
7

 
6

 
6

Equity-Accounted:(14)
 
 
 
 
 
 
 
 
 
 
Calendar-ship-days(12)
 
8,109

 
7,645

 
7,001

 
6,395

 
5,880

Average age of our fleet (in years at end of year)
 
9.0

 
7.9

 
9.1

 
9.6

 
10.4

Vessels at end of year(13)
 
23

 
22

 
20

 
19

 
16


5



Conventional Fleet Data:
 
 
 
 
 
 
 
 
 
 
Calendar-ship-days(12)
 
317

 
1,389

 
1,904

 
2,439

 
2,920

Average age of our fleet (in years at end of year)
 

 
12.0

 
12.6

 
11.7

 
9.5

Vessels at end of year
 

 
2

 
5

 
6

 
8

(1)
Income from vessel operations includes gain (loss) on sales of vessels and (write-down) of goodwill and vessels of $13.6 million, $(54.7) million, $(50.6) million, $(39.0) million and $nil for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
(2)
Equity income includes unrealized (losses) gains on non-designated derivative instruments, and any ineffectiveness of derivative instruments designated as hedges for accounting purposes of $(8.3) million, $9.4 million, $2.4 million, $7.3 million and $10.2 million for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively. In addition, equity income for the year ended December 31, 2018 includes a gain of $5.6 million on our sale of our 50% ownership interest in our joint venture with Exmar NV (or Exmar) (or the Excelsior Joint Venture), which owned one LNG carrier, the Excelsior.
(3)
We entered into interest rate swap and swaption agreements to mitigate our interest rate risk from our floating-rate debt. We had an agreement with Teekay Corporation relating to the Toledo Spirit time-charter contract under which Teekay Corporation paid us any amounts payable to the charterer as a result of spot rates being below the fixed rate, and we paid Teekay Corporation any amounts payable to us as a result of spot rates being in excess of the fixed rate. The Toledo Spirit was sold in early 2019, and as a result, the derivative agreement ended at that time. With the exception of the interest rate swaps in our consolidated joint venture, Teekay Nakilat Corporation (or the RasGas II Joint Venture), and for several interest rate swaps in certain of our equity-accounted joint ventures where we have applied hedge accounting, changes in the fair value of our derivatives are recognized immediately into income and are presented as realized and unrealized (loss) gain on non-designated derivative instruments in the consolidated statements of income. Please see “Item 18 – Financial Statements: Note 13 – Derivative Instruments and Hedging Activities.”
(4)
Under GAAP, all foreign currency-denominated monetary assets and liabilities, such as cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued liabilities, advances from affiliates and long-term debt, are revalued and reported based on the prevailing exchange rate at the end of the period. Foreign exchange gains and losses include realized and unrealized gains and losses on our cross currency swaps. We entered into cross currency swaps concurrently with the issuance of our Norwegian Kroner (or NOK) denominated bonds to economically hedge the foreign currency exposure on the payment of interest and principal of our NOK-denominated bonds. Our primary sources of foreign currency exchange gains and losses are our Euro-denominated term loans and NOK-denominated bonds. Our Euro-denominated term loans totaled 147.5 million Euros ($165.4 million) at December 31, 2019, 169.0 million Euros ($193.8 million) at December 31, 2018, 194.1 million Euros ($233.0 million) at December 31, 2017, 208.9 million Euros ($219.7 million) at December 31, 2016 and 227.7 million Euros ($241.8 million) at December 31, 2015. Our NOK-denominated bonds totaled 3.1 billion NOK ($347.2 million) at December 31, 2019, 3.1 billion NOK ($353.0 million) at December 31, 2018, 3.1 billion NOK ($377.9 million) at December 31, 2017, 3.2 billion NOK ($371.3 million) at December 31, 2016 and 2.6 billion NOK ($294.0 million) at December 31, 2015.
(5)
Other (expense) income for the year ended December 31, 2018 includes a $53.0 million expense relating to the RasGas II Joint Venture recognizing an additional tax indemnification liability. Please see "Item 18 – Financial Statements: Note 14b – Commitments and Contingencies."
(6)
Vessels and equipment consist of (a) our vessels, at cost less accumulated depreciation, (b) vessels related to finance leases, at cost less accumulated depreciation, (c) operating lease right-of-use assets and (d) advances on newbuilding contracts.
(7)
Certain of our external charters have been accounted for as direct financing and sales-type leases. As a result, the vessels associated with the external charters accounted for as direct financing and sales-type leases are not included as part of vessels and equipment. Please see "Item 18 – Financial Statements: Note 6 – Revenue – Net Investments in Direct Financing and Sales-Type Leases."
(8)
Total debt represents the current portion of long-term debt and long-term debt, and the current and long-term portion of obligations related to finance leases.
(9)
Net voyage revenues is a non-GAAP financial measure. Consistent with general practice in the shipping industry, we use net voyage revenues (defined as voyage revenues less voyage expenses) as a measure of equating revenues generated from voyage charters to revenues generated from time-charters, which assists us in making operating decisions about the deployment of our vessels and their performance. Under time-charters the charterer pays the voyage expenses, whereas under voyage charter contracts the ship owner pays these expenses. Some voyage expenses are fixed, and the remainder can be estimated. If we, as the ship owner, pay the voyage expenses, we typically pass the approximate amount of these expenses on to our customers by charging higher rates under the contract or billing the expenses to them. As a result, although voyage revenues from different types of contracts may vary, the net voyage revenues are comparable across the different types of contracts. We principally use net voyage revenues because it provides more meaningful information to us than voyage revenues, the most directly comparable GAAP financial measure. Net voyage revenues are also widely used by investors and analysts in the shipping industry for comparing financial performance between companies and to industry averages. The following table reconciles net voyage revenues with voyage revenues:
(in thousands of U.S. Dollars)
 
Year Ended
December 31,
2019
 
Year Ended
December 31,
2018
 
Year Ended
December 31,
2017
 
Year Ended
December 31,
2016
 
Year Ended
December 31,
2015
Voyage revenues
 
601,256

 
510,762

 
432,676

 
396,444

 
397,991

Voyage expenses
 
(21,387
)
 
(28,237
)
 
(8,202
)
 
(1,656
)
 
(1,146
)
Net voyage revenues
 
579,869


482,525


424,474


394,788

 
396,845

(10)
EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income before interest, taxes and depreciation and amortization. Adjusted EBITDA includes EBITDA before (gain) loss on sales of vessels and write-down of goodwill and vessels, foreign currency exchange loss (gain), amortization of in-process contracts included in voyage revenues, realized and unrealized loss (gain) on non-designated derivative instruments, direct finance and sales-type lease payments received in excess of revenue recognized, realized loss (gain) on Toledo Spirit derivative contract, other expense (income), cash flow adjustment for two Suezmax tankers for 2015 and 2016, and adjustments to Equity-Accounted EBITDA. EBITDA and Adjusted EBITDA are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors. EBITDA and Adjusted EBITDA assist our management and security holders by increasing the comparability of our fundamental performance from period to period and against the fundamental performance of other companies in our industry that provide EBITDA and Adjusted EBITDA information. This increased comparability is achieved by excluding the potentially disparate effects between periods or companies of interest expense, taxes, depreciation or amortization, amortization of in-process revenue contracts and realized and unrealized loss on derivative instruments relating to interest rate swaps, interest rate swaptions, and cross currency swaps, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income between periods. We believe that

6



including EBITDA and Adjusted EBITDA benefits investors in (a) selecting between investing in us and other investment alternatives and (b) monitoring our ongoing financial and operational strength and health in assessing whether to continue to hold our equity or debt securities, as applicable.
Neither EBITDA nor Adjusted EBITDA should be considered as an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude certain items that affect net income and these measures may vary among other companies. Therefore, EBITDA and Adjusted EBITDA as presented in this Annual Report may not be comparable to similarly titled measures of other companies.
The following table reconciles our historical consolidated EBITDA and Adjusted EBITDA to net income.
(in thousands of U.S. Dollars)
 
Year Ended
December 31,
2019
 
Year Ended
December 31,
2018
 
Year Ended
December 31,
2017
 
Year Ended
December 31,
2016
 
Year Ended
December 31,
2015
Reconciliation of “EBITDA” and “Adjusted EBITDA” to “Net income”:
 
 
 
 
 
 
 
 
 
 
Net income
 
164,604
 
26,875
 
48,911
 
157,965
 
217,510
Depreciation and amortization
 
136,765
 
124,378
 
105,545
 
95,542
 
92,253
Interest expense, net of interest income
 
160,536
 
124,543
 
78,022
 
56,261
 
40,758
Income tax expense
 
7,477
 
3,213
 
824
 
973
 
2,722
EBITDA
 
469,382

279,009

233,302

310,741
 
353,243
(Gain) loss on sales of vessels and write-down of goodwill and vessels

 
(13,564)
 
54,653
 
50,600
 
38,976
 
Foreign currency exchange loss (gain)
 
9,640
 
(1,371)
 
26,933
 
(5,335)
 
(13,943)
Amortization of in-process contracts included in voyage revenues
 
 
(5,756)
 
(3,785)
 
(2,202)
 
(2,772)
Realized and unrealized loss (gain) on non-designated derivative instruments
 
13,361
 
(3,278)
 
5,309
 
7,161
 
20,022
Realized loss (gain) on Toledo Spirit derivative contract
 
 
1,480
 
678
 
(654)
 
(3,429)
Direct finance and sale-type lease payments received in excess of revenue recognized
 
21,636
 
11,082
 
14,326
 
20,445
 
18,425
Adjustments to Equity-Accounted EBITDA(15)(16)
 
181,758
 
128,100
 
123,748
 
110,502
 
101,937
Other expense (income)(5)
 
2,454
 
51,373
 
(1,561)
 
(1,537)
 
(1,526)
Cash flow adjustment for two Suezmax tankers
 
 
 
 
1,966
 
2,008
Adjusted EBITDA
 
684,667

515,292

449,550

480,063

473,965
(11)
Excludes expenditures for vessels and equipment from our equity-accounted joint ventures.
(12)
Calendar-ship-days are equal to the aggregate number of calendar days in a period that our vessels were in our possession during that period. In addition, the calendar-ship-days for our consolidated LNG fleet includes 365 days for the year ended December 31, 2019 (2018 – 119 days) relating to the charter-in contract of the Magellan Spirit from our 52%-owned joint venture with Marubeni Corporation (or the MALT Joint Venture).
(13)
Liquefied Natural Gas
For 2018, 2017, 2016 and 2015, the number of vessels indicated does not include one, six, nine and 11 LNG carrier newbuilding(s), respectively, in our consolidated LNG fleet and five, nine, 10 and 10 LNG carrier newbuildings, respectively, in our equity-accounted LNG fleet.
Liquefied Petroleum Gas
For 2017, 2016 and 2015, the number of vessels indicated does not include three, four and seven LPG carrier newbuildings, respectively, in our equity-accounted LPG fleet.
(14)
Equity-accounted vessels in our LNG fleet include (i) six LNG carriers (or the MALT LNG Carriers) relating to the MALT Joint Venture, (ii) four LNG carriers (or the RasGas III LNG Carriers) relating to our joint venture with QGTC Nakilat (1643-6) Holdings Corporation (or the RasGas III Joint Venture), (iii) four LNG carriers relating to the Angola Project (or the Angola LNG Carriers) in our joint venture with Mitsui & Co. Ltd. and NYK Energy Transport (Atlantic) Ltd. (or the Angola Joint Venture), (iv) one LNG carrier at December 31, 2019 and 2018 and two LNG carriers from 2017 to 2015 (or the Exmar LNG Carriers) relating to our LNG joint venture with Exmar (or the Excalibur and Excelsior Joint Ventures), (v) four, three and one LNG carrier(s) (or the Pan Union LNG Carriers) relating to the Pan Union Joint Venture from 2019, 2018 and 2017, respectively, and (vi) six and two ARC7 LNG carriers relating to our 50/50 joint venture with China LNG (Holdings) Limited (or the Yamal LNG Joint Venture) from 2019 and 2018, respectively. Equity-accounted vessels in our LPG fleet include 23, 22, 20, 19, and 16 LPG carriers (or the Exmar LPG Carriers) from 2019, 2018, 2017, 2016, and 2015, respectively, relating to our LPG joint venture with Exmar (or the Exmar LPG Joint Venture). The figures in the selected financial data for our equity-accounted vessels are at 100% and not based on our ownership percentages.
(15)
Adjusted Equity-Accounted EBITDA is a non-GAAP financial measure. Adjusted Equity-Accounted EBITDA represents equity income after Adjustments to Equity Income. Adjustments to Equity Income includes depreciation and amortization, net interest expense, income tax expense (recovery), amortization of in-process revenue contracts, direct finance and sales-type lease payments received in excess of revenue recognized, realized and unrealized loss (gain) on derivative instruments and other items, write-down and loss on sales of vessels, and gain on sale of equity-accounted investment, in each case related to our equity-accounted entities, on the basis of our ownership percentages of such entities. Neither Adjusted Equity-Accounted EBITDA nor Adjustments to Equity-Accounted EBITDA should be considered as an alternative to equity income or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjustments to Equity-Accounted EBITDA exclude some, but not all, items that affect equity income and these measures may vary among other companies. Therefore, Adjustments to Equity-Accounted EBITDA as presented in this Annual Report may not be comparable to similarly titled measures of the other companies.
(16)
Adjustments relating to equity income from our equity-accounted joint ventures are as follows:

7



(in thousands of U.S. Dollars)
 
Year Ended
December 31,
2019
 
Year Ended
December 31,
2018
 
Year Ended
December 31,
2017
 
Year Ended
December 31,
2016
 
Year Ended
December 31,
2015
Reconciliation of “Adjusted Equity-Accounted EBITDA” to “Equity Income”:
 
 
 
 
 
 
 
 
 
 
Equity income
 
58,819
 
53,546
 
9,789
 
62,307
 
84,171
Depreciation and amortization
 
55,340
 
52,883
 
54,453
 
52,095
 
48,702
Interest expense, net of interest income
 
91,394
 
69,532
 
46,342
 
40,223
 
36,647
Income tax expense (recovery)
 
1,420
 
(262)
 
504
 
352
 
315
Amortization of in-process revenue contracts
 
(3,793)
 
(3,847)
 
(4,307)
 
(5,482)
 
(7,153)
Direct finance and sales-type lease payments received in excess of revenue recognized
 
24,574
 
18,453
 
14,220
 
13,231
 
12,381
Other items including realized and unrealized loss (gain) on derivative instruments
 
12,823
 
(3,353)
 
7,036
 
5,222
 
9,817
Write-down and loss on sales of vessels
 
 
257
 
5,500
 
4,861
 
1,228
Gain on sale of equity-accounted investment(2)
 
 
(5,563)
 
 
 
Adjustments to Equity-Accounted EBITDA
 
181,758

128,100

123,748

110,502

101,937
Adjusted Equity-Accounted EBITDA
 
240,577

181,646

133,537

172,809
 
186,108
RISK FACTORS
Some of the following risks relate principally to the industry in which we operate and to our business in general. Other risks relate principally to the securities market and to ownership of our common or preferred units. The occurrence of any of the events described in this section could materially and adversely affect our business, financial condition, operating results and ability to pay distributions on, and the trading price of, our common and preferred units.
We may not have sufficient cash from operations to enable us to pay distributions on our common and preferred units.
The amount of cash we can distribute on our common and preferred units principally depends upon the amount of cash we generate from our operations, which may fluctuate based on, among other things:

the rates we obtain from our charters and the performance by our charterers of their obligations under the charters;
the expiration of charter contracts;
the charterers' option to terminate charter contracts or repurchase vessels, in either case upon our breach of the relevant contract, or payment of any applicable early termination or repurchase amounts;
the utilization levels of our vessels trading in the spot or short-term market;
the level of our operating costs, such as the cost of crews and insurance;
the continued availability of LNG and LPG production, liquefaction and regasification facilities;
the number of unscheduled off-hire days for our fleet and the timing of, and number of days required for, scheduled dry docking of our vessels;
prevailing global and regional economic and political conditions;
currency exchange rate fluctuations;
the effect of governmental regulations and maritime self-regulatory organization standards on the conduct of our business; and
limitations on obtaining cash distributions from joint venture entities due to similar restrictions on the joint venture entities.

The actual amount of cash we will have available for distribution also will depend on factors such as:

the level of capital expenditures we make, including for maintaining vessels, building new vessels, acquiring existing vessels and complying with regulations;
our debt service requirements, financial covenants and restrictions on distributions contained in our debt instruments;
fluctuations in our working capital needs;
our ability to make working capital borrowings, including to pay distributions to unitholders; and
the amount of any cash reserves, including reserves for future capital expenditures, anticipated future credit needs and other matters, established by Teekay GP L.L.C., our general partner (or our General Partner), in its discretion.


8



The amount of cash we generate from our operations may differ materially from our profit or loss for the period, which will be affected by non-cash items. As a result of this and the other factors mentioned above, we may make cash distributions during periods when we record losses and may not make cash distributions during periods when we record net income.
Our ability to grow may be adversely affected by our cash distribution policy.
Our cash distribution policy, which is consistent with our partnership agreement, requires us to distribute each quarter all of our Available Cash (as defined in our partnership agreement, which takes into account cash reserves for, among other things, future capital expenditures and credit needs). Accordingly, our growth may not be as fast as businesses that reinvest their Available Cash to expand ongoing operations.

In November 2019, our General Partner announced that quarterly common unit cash distributions would increase by 32% to $0.25 per unit, commencing with the first quarter of 2020 distribution to be paid in May 2020 as part of a balanced capital allocation strategy, however, our distribution policy is subject to certain restrictions and may be changed by the Board of Directors of our General Partner. In determining the amount of cash available for distribution, the Board of Directors of our General Partner, which makes the determination on our behalf, approves the amount of cash reserves, including reserves for future maintenance capital expenditures, anticipated future credit needs, working capital and other matters. We also rely upon external financing sources, including commercial borrowings and proceeds from debt and equity offerings, to fund our capital expenditures. Accordingly, to the extent we do not have sufficient cash reserves or are unable to obtain financing, our cash distribution policy may significantly impair our ability to meet our financial needs or to grow.
Our ability to repay or refinance our debt obligations and to fund our capital expenditures will depend on certain financial, business and other factors, many of which are beyond our control. To the extent we are unable to finance these obligations and expenditures with cash from operations or by issuing debt or equity securities, our ability to make cash distributions may be diminished or our financial leverage may increase, or our unitholders may be diluted.
To fund our existing and future debt obligations and capital expenditures, we will be required to use cash from operations, incur borrowings, and/or seek to access other financing sources. Our access to potential funding sources and our future financial and operating performance will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond our control. If we are unable to access additional bank financing and generate sufficient cash flow to meet our debt, capital expenditure and other business requirements, we may be forced to take actions such as:

restructuring our debt;
seeking additional debt or equity capital;
selling assets;
reducing distributions;
reducing, delaying or cancelling our business activities, acquisitions, investments or capital expenditures; or
seeking bankruptcy protection.

Such measures might not be successful, available on acceptable terms or enable us to meet our debt, capital expenditure and other obligations. Some of such measures may adversely affect our business and reputation. In addition, our financing agreements may restrict our ability to implement some of these measures.

Use of cash from operations and possible future sale of certain assets will reduce cash available for distribution to unitholders. Our ability to obtain bank financing or to access the capital markets for future offerings may be limited by our financial condition at the time of any such financing or offering as well as by adverse market conditions. Even if we are successful in obtaining necessary funds, the terms of such financings could limit our ability to pay cash distributions to unitholders or operate our business as currently conducted. In addition, incurring additional debt may significantly increase our interest expense and financial leverage, and issuing additional equity securities may result in significant unitholder dilution and would increase the aggregate amount of cash required to maintain our quarterly distributions to unitholders.
The novel coronavirus (COVID-19) pandemic is dynamic and expanding. The continuation of this outbreak likely will have, and the emergence of other epidemic or pandemic crises could have, material adverse effects on our business, results of operations, or financial condition.
The novel coronavirus pandemic is dynamic and expanding, and its ultimate scope, duration and effects are uncertain. We expect that this pandemic, and any future epidemic or pandemic crises, could result in direct and indirect adverse effects on our industry and customers, which in turn may impact our business, results of operations and financial condition. Effects of the current pandemic include, or may include, among others:

deterioration of worldwide, regional or national economic conditions and activity, which could further reduce or prolong the recent significant declines in energy prices, or adversely affect global demand for LPG and LNG, demand for our services, and charter and spot rates;
disruptions to our operations as a result of the potential health impact on our employees and crew, and on the workforces of our customers and business partners;

9



disruptions to our business from, or additional costs related to, new regulations, directives or practices implemented in response to the pandemic, such as travel restrictions (including for any of our onshore personnel or any of our crew members to timely embark or disembark from our vessels), increased inspection regimes, hygiene measures (such as quarantining and physical distancing) or increased implementation of remote working arrangements;
potential delays in the loading and discharging of cargo on or from our vessels, and any related off hire due to quarantine, worker health, or regulations, which in turn could disrupt our operations and result in a reduction of revenue;
potential shortages or a lack of access to required spare parts for our vessels, or potential delays in any repairs to, or scheduled or unscheduled maintenance or modifications or dry docking of, our vessels (including the currently scheduled drydocks for 14 of our LNG and LPG carriers in 2020), as a result of a lack of berths available by shipyards from a shortage in labor or due to other business disruptions;
potential delays in vessel inspections and related certifications by class societies, customers or government agencies;
potential reduced cash flows and financial condition, including potential liquidity constraints;
reduced access to capital, including the ability to refinance any existing obligations, as a result of any credit tightening generally or due to continued declines in global financial markets, including to the prices of publicly-traded securities of us, our peers and of listed companies generally;
a reduced ability to opportunistically sell any of our LNG or LPG vessels on the second-hand market, either as a result of a lack of buyers or a general decline in the value of second-hand vessels;
a decline in the market value of our vessels, which may cause us to (a) incur impairment charges or (b) breach certain covenants under our financing agreements (including our secured facility agreements and financial leases) relating to vessel-to-loan covenants;
a reduced ability to fund repurchases of our common units pursuant to our common unit repurchase program;
disruptions, delays or cancellations in the construction of new LNG projects (including production, liquefaction, regasification, storage and distribution facilities), which could limit or adversely affect our ability to pursue future growth opportunities; and
potential deterioration in the financial condition and prospects of our customers or joint venture partners, or attempts by customers or third parties to invoke force majeure contractual clauses as a result of delays or other disruptions.
Although disruption and effects from the novel coronavirus pandemic may be temporary, given the dynamic nature of these circumstances and the worldwide nature of our business and operations, the duration of any business disruption and the related financial impact to us cannot be reasonably estimated at this time, but could materially affect our business, results of operations and financial condition.
Our future performance and ability to secure future employment for our vessels depends on growth (including any continued growth) in LNG production, demand and supply for LNG and LPG, and associated demand and supply for LNG and LPG shipping.
Our future performance, including our ability to strengthen our balance sheet and to profitably employ and expand our fleet, will depend on growth in LNG production, demand and supply for LNG and LPG, and associated demand and supply for LNG and LPG shipping services. Accordingly, our future performance depends on growth in world and regional demand and supply for LNG and LPG, and marine transportation of LNG and LPG, as well as the supply of LNG and LPG. Demand or supply for LNG and LPG and for the marine transportation of LNG and LPG could be negatively affected by a number of factors, such as:
increases in the cost of natural gas derived from LNG relative to the cost of natural gas generally;
increase in the cost of LPG relative to the cost of naphtha and other competing petrochemicals;
increases in the production of natural gas in areas linked by pipelines to consuming areas, the extension of existing, or the development of new, pipeline systems in markets we may serve, or the conversion of existing non-natural gas pipelines to natural gas pipelines in those markets;
decreases in the consumption of natural gas due to increases in its price relative to other energy sources, such as oil, or other factors making consumption of natural gas less attractive;
increases in availability of additional sources of natural gas, including shale gas;
increases in the number of LNG or LPG newbuilding vessels, which could lead to an oversupply of vessels in the market and in turn create downward pressure on the demand for LNG and LPG shipping services;
increases in availability of alternative or renewable energy sources; and

10



negative global or regional economic or political conditions, particularly in LNG and LPG consuming regions, which could reduce energy consumption or its growth, including labor or political unrest or military conflicts affecting existing or proposed areas of LNG production or regasification.
Furthermore, spot charter rates initially came under pressure commencing in February 2020 due to the impact of the novel coronavirus pandemic. In addition, trading prices of our equity securities have been volatile due in part to the recent impact of the pandemic on the energy and financial markets overall. The ongoing pandemic may significantly impact global economic activity (including the demand for LNG and LPG, and associated shipping rates, which may in turn negatively affect our spot chartered vessels) and may disrupt, delay or lead to cancellations of the construction of new LNG projects (including production, liquefaction, regasification, storage and distribution facilities), which in turn could negatively affect our business, results of operations and financial condition.
Reduced demand for LNG and LPG shipping could have a material adverse effect on our future growth and could harm our business, results of operations and financial condition.
Adverse economic conditions, including disruptions in the global credit markets, could adversely affect our business, financial condition, and results of operations.
Economic downturns and financial crises in the global markets could produce illiquidity in the capital markets, market volatility, increased exposure to interest rate and credit risks and reduced access to capital markets. If global financial markets and economic conditions significantly deteriorate in the future, we may face restricted access to the capital markets or bank lending, which may make it more difficult and costly to fund future growth. Decreased access to such resources could have a material adverse effect on our business, financial condition and results of operations.
In addition, the United Kingdom exited the European Union (or EU) on January 31, 2020 and entered into a transition period from February 1, 2020 to December 31, 2020 during which it will seek to agree to the terms of its future relationship with the EU. Uncertainty regarding the relationship between the United Kingdom and the EU post-2020 may create economic instability in the United Kingdom which could affect our operations, including our access to bank loans, and may lead to an adverse effect on our business. While we will seek to minimize associated risk by implementing mitigation plans, we cannot assure you that any such plans will be effective.
We make capital expenditures to maintain the operating capacity of our fleet, which reduce our cash available for distribution. In addition, each quarter our General Partner is required to deduct estimated maintenance capital expenditures from operating surplus, which may result in less cash available for distribution to unitholders than if actual maintenance capital expenditures were deducted.
We must make capital expenditures to maintain, over the long term, the operating capacity of our fleet. These maintenance capital expenditures include capital expenditures associated with dry docking a vessel, modifying an existing vessel or acquiring a new vessel to the extent these expenditures are incurred to maintain the operating capacity of our fleet. These expenditures could increase as a result of changes in:

the cost of labor and materials;
the ability to timely complete any capital expenditures;
customer requirements;
increases in the size of our fleet;
governmental regulations and maritime self-regulatory organization standards relating to safety, security or the environment; and
competitive standards.

In addition, our actual maintenance capital expenditures can vary significantly from quarter-to-quarter based on, among other things, the number of vessels dry docked during that quarter. Certain repair and maintenance items are more efficient to complete while a vessel is in dry dock. Consequently, maintenance capital expenditures will typically increase in periods when there is an increase in the number of vessels dry docked. Our maintenance capital expenditures reduce the amount of cash we have available for distribution to our unitholders.

In 2020, 14 of our LNG and LPG vessels are scheduled to be dry-docked and, in 2021, 11 of our LNG and LPG vessels are scheduled to be dry-docked. The dry-dockings for all of these vessels may be longer and more costly than normal as a result of the installation of ballast water treatment systems (or BWTS) on each vessel in order to comply with regulatory requirements. Any delay or cost overrun of the dry-docking could have a material adverse effect on our business, results of operations and financial condition.

Our partnership agreement requires our General Partner to deduct estimated, rather than actual, maintenance capital expenditures from operating surplus (as defined in our partnership agreement) each quarter in an effort to reduce fluctuations in operating surplus. The amount of estimated maintenance capital expenditures deducted from operating surplus is subject to review and change by the conflicts committee of our General Partner’s Board of Directors at least once a year. In years when estimated maintenance capital expenditures are higher than actual maintenance capital expenditures – as we expect will be the case in the years we are not required to make expenditures for mandatory dry dockings – the amount of cash available for distribution to unitholders will be lower than if actual maintenance capital expenditures were deducted from operating surplus. If our General Partner underestimates the appropriate level of estimated maintenance capital expenditures, we may have less cash available for distribution in future periods when actual capital expenditures begin to exceed our previous estimates.

11



We may make substantial capital expenditures to expand the size of our fleet or gas business and generally are required to make significant installment payments for acquisitions of newbuilding vessels or for construction of receiving and regasification terminals prior to their delivery or completion and generation of revenue.
We have previously made substantial capital expenditures to increase the size of our fleet or gas business. In the event that we further increase the size of our fleet or gas business, we may incur further substantial capital expenditures. Please read “Item 5 – Operating and Financial Review and Prospects: Contractual Obligations and Contingencies” for additional information about our commitments associated with our capital expenditures. The obligations of us and our equity-accounted joint ventures to pay the committed expenditures is not conditional upon our or their ability to obtain financing for such purchases. Please read "Item 5 – Operating and Financial Review and Prospects: Contractual Obligations and Contingencies."
Any capital expenditures, including as a result of pursuing future fleet expansion opportunities, may reduce our cash available for distribution to our unitholders. Funding of any capital expenditures with debt may significantly increase our interest expense and financial leverage, and funding of capital expenditures by issuing additional equity securities may result in significant unitholder dilution. Our failure to obtain the funds for necessary future capital expenditures could have a material adverse effect on our business, results of operations and financial condition and on our ability to make cash distributions to unitholders.

We regularly evaluate and pursue opportunities to provide the marine transportation requirements for new or expanding LNG and LPG projects. The award process relating to LNG transportation opportunities typically involves various stages and takes several months to complete. We may not be awarded charters relating to any of the projects we pursue. If we bid on and are awarded contracts relating to any LNG and LPG project, we will need to incur significant capital expenditures to build the LNG and LPG carriers.

To fund any existing or future capital expenditures, we will be required to use cash from operations or incur borrowings or raise capital through the sale of debt or additional equity securities. Use of cash from operations will reduce cash available for distributions to unitholders. Our ability to obtain bank financing or to access the capital markets for future offerings may be limited by our financial condition at the time of any such financing or offering as well as by adverse market conditions resulting from, among other things, general economic conditions and contingencies and uncertainties that are beyond our control. Our failure to obtain the funds for future capital expenditures could have a material adverse effect on our business, results of operations and financial condition and on our ability to make cash distributions. Even if we are successful in obtaining necessary funds, the terms of such financings could limit our ability to pay distributions to our unitholders. In addition, incurring additional debt may significantly increase our interest expense and financial leverage, and issuing additional equity securities may result in significant unitholder dilution and would increase the aggregate amount of cash required to maintain our current level of quarterly distributions to unitholders, which could have a material adverse effect on our ability to make cash distributions.

In addition, although delivery of a completed vessel will not occur until much later (approximately two to three years from the time an order is placed), we typically must pay an initial installment up-front upon signing the purchase contract. During the construction period, we generally are required to make installment payments on newbuildings prior to their delivery, in addition to incurring financing, miscellaneous construction and project management costs, but we do not derive any income from the vessel until after its delivery. If we finance these payments by issuing debt or equity securities, we will increase the aggregate amount of interest or cash required to maintain our current level of quarterly distributions to unitholders prior to generating cash from the operation of the newbuilding.
Our substantial debt levels may limit our flexibility in obtaining additional financing, refinancing credit facilities upon maturity, pursuing other business opportunities and paying distributions.
As at December 31, 2019, our consolidated debt, obligations related to finance leases and operating leases, and advances from affiliates totaled $3.3 billion and we had the capacity to borrow an additional $166.2 million under our revolving credit facilities. These facilities may be used by us for general partnership purposes. If we obtain debt financing for future newbuilding orders or we are awarded contracts for new LNG or LPG projects, our consolidated debt and obligations related to finance leases and operating leases will increase, perhaps significantly. We will continue to have the ability to incur additional debt, subject to limitations in our credit facilities. Our level of debt could have important consequences to us, including the following:

our ability to obtain additional financing, if necessary, for working capital, capital expenditures, acquisitions or other purposes may be impaired, or such financing may not be available on favorable terms, if at all;
we will need a substantial portion of our cash flow to make principal and interest payments on our debt, reducing the funds that would otherwise be available for operations, future business opportunities and distributions to unitholders;
if we are unable to satisfy the restrictions included in any of our financing agreements or are otherwise in default under any of those agreements, as a result of our debt levels or otherwise, we may be unable to make cash distributions to our unitholders, notwithstanding our stated cash distribution policy;
our debt level may make us more vulnerable than our competitors with less debt to competitive pressures or a downturn in our industry or the economy generally; and
our debt level may limit our flexibility in responding to changing business and economic conditions.

Our ability to service our debt and obligations related to finance leases depends upon, among other things, our future financial and operating performance, which is affected by prevailing economic conditions and financial, business, regulatory and other factors, some of which are beyond our control. Furthermore, our ability to borrow against the vessels in our existing fleet and any vessels we may acquire in the future

12



largely depends on the value of the vessels, which in turn depends in part on charter hire rates, charter lengths and the ability of our charterers to comply with the terms of the charters. If our operating results are not sufficient to service our current or future indebtedness or obligations related to finance leases, we will be forced to take actions such as reducing distributions, reducing, canceling or delaying our business activities, acquisitions, investments or capital expenditures, selling assets, seeking to restructure or refinance our debt, seeking additional debt or equity capital or seeking bankruptcy protection. We may not be able to effect any of these remedies on satisfactory terms, or at all.
Financing agreements containing operating and financial restrictions may restrict our business and financing activities.
The operating and financial restrictions and covenants in our financing arrangements and any future financing agreements could adversely affect our ability to finance future operations or capital needs or to pursue and expand or pursue our business activities. For example, these financing arrangements may restrict our ability to:

incur or guarantee indebtedness;
change ownership or structure, including mergers, consolidations, liquidations and dissolutions;
make dividends or distributions when in default of the relevant loans;
make certain negative pledges and grant certain liens;
sell, transfer, assign or convey assets;
make certain investments; and
enter into new lines of business.

Some of our financing arrangements require us to maintain a minimum level of tangible net worth, to maintain certain ratios of vessel values as it relates to the relevant outstanding principal balance, to maintain a minimum level of aggregate liquidity, to maintain leverage below a maximum level and require certain of our subsidiaries to maintain restricted cash deposits. Please read "Item 5 – Operating and Financial Review and Prospects: Credit Facilities and Finance Leases." Our ability to comply with covenants and restrictions contained in debt instruments may be affected by events beyond our control, including prevailing economic, financial and industry conditions. If market or other economic conditions deteriorate, compliance with these covenants may be impaired. If restrictions, covenants, ratios or tests in the financing agreements are breached, a significant portion or all of the obligations may become immediately due and payable, and the lenders’ commitment to make further loans may terminate. This could lead to cross-defaults under other financing agreements and result in obligations becoming due and commitments being terminated under such agreements. A default under financing agreements could also result in foreclosure on any of our vessels and other assets securing related loans.

Furthermore, the termination of any of our charter contracts by our customers could result in the repayment of the debt facilities to which the chartered vessels relate.

Restrictions in our debt agreements may prevent us from paying distributions.

The payment of principal and interest on our debt and obligations related to finance leases reduces cash available for distribution on our units. In addition, our financing agreements prohibit the payment of distributions upon the occurrence of the following events, among others:

failure to pay any principal, interest, fees, expenses or other amounts when due;
failure to notify the lenders of any material discharge of hazardous material, or of any action or claim related thereto;
breach or lapse of any insurance with respect to vessels securing the facility;
breach of certain financial covenants;
failure to observe any other agreement, security instrument, obligation or covenant beyond specified cure periods in certain cases;
default under other indebtedness;
bankruptcy or insolvency events;
failure of any representation or warranty to be materially correct;
a change of control, as defined in the applicable agreement; or
a material adverse effect, as defined in the applicable agreement.
We derive a substantial majority of our revenues from a limited number of customers, and the loss of any customer, charter or vessel, or any adjustment to our charter contracts could result in a significant loss of revenues and cash flow.
We have derived, and believe that we will continue to derive, a significant portion of our revenues and cash flow from a limited number of customers. Please read “Item 18 – Financial Statements: Note 4 – Segment Reporting.”

We could lose a customer or the benefits of a time-charter if:

13




the customer fails to make charter payments because of its financial inability, disagreements with us or otherwise;
we agree to reduce the charter payments due to us under a charter because of the customer’s inability to continue making the original payments;
upon our breach of the relevant contract, the customer exercises certain rights to terminate the charter, purchase or cause the sale of the vessel or, under some of our charters, convert the time-charter to a bareboat charter (some of which rights are exercisable at any time);
the customer terminates the charter because we fail to deliver the vessel within a fixed period of time, the vessel is lost or damaged beyond repair, there are serious deficiencies in the vessel or prolonged periods of off-hire, or we default under the charter; or
under some of our time-charters, the customer terminates the charter because of the termination of the charterer’s sales agreement or a prolonged force majeure event affecting the customer, including damage to or destruction of relevant facilities, war or political unrest preventing us from performing services for that customer.

Two of the six MALT LNG Carriers in our 52%-owned MALT Joint Venture, the Marib Spirit and Arwa Spirit, were chartered-out to Yemen LNG under long-term charter contracts with YLNG. However, due to the political unrest in Yemen, YLNG decided to temporarily close operation of its LNG plant in Yemen in 2015. As a result, commencing January 1, 2016, the Teekay LNG-Marubeni Joint Venture agreed to successive deferral arrangements with YLNG pursuant to which a portion of the charter payments were deferred. Concurrently with the expiration of the most current deferral arrangement, in April 2019, the MALT Joint Venture entered into a suspension agreement with YLNG (the Suspension Agreement) pursuant to which the MALT Joint Venture and YLNG agreed to suspend the two charter contracts for a period of up to three years from the date of the agreement. Please read “Item 5 – Operating and Financial Review and Prospects: Significant Developments in 2019 and Early 2020 – Charter Contracts for MALT LNG Carriers."

If we lose a key LNG time-charter, we may be unable to redeploy the related vessel on terms as favorable to us due to the long-term nature of most LNG time-charters and the lack of an established LNG spot market. If we are unable to redeploy a LNG carrier, we will not receive any revenues from that vessel, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition. In addition, if a customer exercises its right to purchase a vessel, we would not receive any further revenue from the vessel and may be unable to obtain a substitute vessel and charter. This may cause us to receive decreased revenue and cash flows from having fewer vessels operating in our fleet. Any compensation under our charters for a purchase of the vessels may not adequately compensate us for the loss of the vessel and related time-charter.

The loss of certain of our customers, time-charters or vessels, or a decline in payments under our charters, could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions to unitholders.
We depend on Teekay Corporation and certain of our joint venture partners to assist us in operating our business and competing in our markets.
Pursuant to certain services agreements between us and certain of our operating subsidiaries, on the one hand, and certain direct and indirect subsidiaries of Teekay Corporation and certain of our joint venture partners, on the other hand, the Teekay Corporation subsidiaries and certain of our joint venture partners provide to us various services including, in the case of operating subsidiaries, substantially all of their managerial, operational and administrative services (including vessel maintenance, crewing for some of our vessels, purchasing, shipyard supervision, insurance and financial services) and other technical and advisory services, and in the case of Teekay LNG Partners L.P., various administrative services. Our operational success and ability to execute our growth strategy depend significantly upon Teekay Corporation’s and certain of our joint venture partners’ satisfactory performance of these services. Our business will be harmed if Teekay Corporation or certain of our joint venture partners fail to perform these services satisfactorily or if Teekay Corporation or certain of our joint venture partners stop providing these services to us.

Our ability to compete for the transportation requirements of certain LNG and LPG projects, enter into new charter contracts, secure financings and expand our customer relationships depends in part on our ability to leverage our relationships with Teekay Corporation, our joint venture partners and their respective reputation and relationships in the shipping industry. If Teekay Corporation or certain of our joint venture partners suffer material damage to their reputation or relationships it may harm our ability to:

renew existing charters upon their expiration;
obtain new charters;
successfully interact with shipyards during periods of shipyard construction constraints;
obtain financing on commercially acceptable terms; or
maintain satisfactory relationships with our employees and suppliers.

If our ability to do any of the things described above is impaired, it could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions to unitholders.

Our operating subsidiaries may also contract with certain subsidiaries of Teekay Corporation and certain of our joint venture partners to have newbuildings constructed on behalf of our operating subsidiaries and to incur the construction-related financing. Our operating subsidiaries

14



would purchase the vessels on or after delivery based on an agreed-upon price. None of our operating subsidiaries currently has this type of arrangement with Teekay Corporation or any of its affiliates or any joint venture partners.
Significant declines in natural gas and oil prices may adversely affect our growth prospects and results of operations.
Natural gas prices are volatile and have recently reached their lowest levels since 2009 in certain geographic areas. Low energy prices may negatively affect both the competitiveness of natural gas as a fuel for power generation and the market price of natural gas, to the extent that natural gas prices are benchmarked to the price of crude oil. These declines in energy prices have adversely affected energy and master limited partnership capital markets and available sources of financing for our capital expenditures and debt repayment obligations. A sustained low energy price environment may adversely affect our business, results of operations and financial condition and our ability to make cash distributions, as a result of, among other things which are beyond our control:

fluctuations in worldwide and regional supply of and demand for natural gas;
a reduction in exploration for or development of new natural gas reserves or projects, or the delay or cancellation of existing projects as energy companies lower their capital expenditures budgets, which may reduce our growth opportunities;
lower demand for vessels of the types we own and operate, which may reduce available charter rates and revenue to us upon redeployment of our vessels following expiration or termination of existing contracts or upon the initial chartering of vessels, or which may result in extended periods of our vessels being idle between contracts;
customers potentially seeking to renegotiate or terminate existing vessel contracts, or failing to extend or renew contracts upon expiration, or seeking to negotiate cancelable contracts;
the inability or refusal of customers to make charter payments to us or to our joint ventures, due to financial constraints or otherwise; or
declines in vessel values, which may result in losses to us upon vessel sales or impairment charges against our earnings.
Changes in the LPG markets could result in decreased demand for our LPG vessels operating in the spot market.
We have several LPG/multi-gas carriers that operate in the LPG spot market and are either owned by us or owned or chartered-in by the Exmar LPG Joint Venture, a joint venture entity formed pursuant to a joint venture agreement made in February 2013 between us and Belgium-based Exmar NV to own and charter-in LPG carriers with a primary focus on the mid-size gas carrier segment. The charters in the spot market operate for short durations and are priced on a current, or “spot,” market rate. The LPG spot market is volatile and fluctuates based upon the many conditions and events that affect the price, production and transport of LPG, including competition from alternative energy sources and negative global or regional economic or political conditions. Any adverse changes in the LPG markets may impact our ability to enter into economically beneficial charters when our LPG/multi-gas carriers complete their existing short-term charters in the LPG spot market, which may reduce vessel earnings and impact our operating results.
Adverse economic conditions or other developments may affect our customers’ ability to charter our vessels and pay for our services and may adversely affect our business and results of operations.
Adverse economic conditions or other developments relating directly to our customers may lead to a decline in our customers’ operations or ability to pay for our services, which could result in decreased demand for our vessels and services. Our customers’ inability to pay for any reason could also result in their default on our current contracts and charters. The decline in the amount of services requested by our customers or their default on our contracts with them could have a material adverse effect on our business, financial condition and results of operations.
Growth of the LNG market may be limited by infrastructure constraints and community environmental group resistance to new LNG infrastructure over concerns about the environment, safety and terrorism.
A complete LNG project includes production, liquefaction, regasification, storage and distribution facilities and LNG carriers. Existing LNG projects and infrastructure are limited, and new or expanded LNG projects are highly complex and capital-intensive, with new projects often costing several billion dollars. Many factors could negatively affect continued development of LNG infrastructure or disrupt the supply of LNG, including:

increases in interest rates or other events that may affect the availability of sufficient financing for LNG projects on commercially reasonable terms, or at all;
decreases in the price of LNG, which might decrease the expected returns relating to investments in LNG projects;
the inability of project owners or operators to obtain governmental approvals to construct or operate LNG facilities;
local community resistance to proposed or existing LNG facilities based on safety, environmental or security concerns;
any significant explosion, spill or similar incident involving an LNG facility or LNG carrier; and
labor or political unrest affecting existing or proposed areas of LNG production.


15



If the LNG supply chain is disrupted or does not continue to grow, or if a significant LNG explosion, spill or similar incident occurs, it could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions to unitholders.
Our growth depends on our ability to expand relationships with existing customers and obtain new customers, for which we will face substantial competition.
One of our principal objectives is to enter into long-term, fixed-rate LNG and LPG charters. The process of obtaining new long-term charters is highly competitive and generally involves an intensive screening process and competitive bids, and often extends for several months. Shipping contracts are awarded based upon a variety of factors relating to the vessel operator, including:

size, age, technical specifications and condition of the vessel;
shipping industry relationships and reputation for customer service and safety;
shipping experience and quality of ship operations (including cost effectiveness);
quality and experience of seafaring crew;
safety record;
the ability to finance carriers at competitive rates and financial stability generally;
relationships with shipyards and the ability to get suitable berths;
construction management experience, including the ability to obtain on-time delivery of new vessels according to customer specifications;
willingness to accept operational risks pursuant to the charter, such as allowing termination of the charter for force majeure events; and
competitiveness of the bid in terms of overall price.

We compete for providing marine transportation services for potential energy projects with a number of experienced companies, including state-sponsored entities and major energy companies affiliated with the energy project requiring energy shipping services. Many of these competitors have significantly greater financial resources than we do or Teekay Corporation does. We anticipate that an increasing number of marine transportation companies – including many with strong reputations and extensive resources and experience – will enter the energy transportation sector. This increased competition may cause greater price competition for time-charters. As a result of these factors, we may be unable to expand our relationships with existing customers or to obtain new customers on a profitable basis, if at all, which would have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions to unitholders.
We may be unable to charter or recharter vessels at attractive rates, which may lead to reduced revenues and profitability.
Our ability to charter or recharter our LNG and LPG carriers upon the expiration or termination of their current time charters and the charter rates payable under any renewal or replacement charters depend upon, among other things, the then current states of the LNG and LPG carrier markets. As of December 31, 2019, in our liquefied natural gas and liquified petroleum gas operating fleet, including the Magellan Spirit chartered-in from the Teekay LNG-Marubeni Joint Venture, we had zero and six vessels, respectively, that were unchartered or trading in the spot market; we had three and fourteen vessels, respectively, with charters scheduled to expire in 2020, excluding extension options; and two and six vessels, respectively, with charters scheduled to expire in 2021, excluding extension options. If charter rates are low when existing time charters expire, we may be required to recharter our vessels at reduced rates or even possibly at a rate whereby we incur a loss, which would harm our results of operations. Alternatively, we may determine to leave such vessels off-charter. The size of the current orderbooks for LNG carriers and LPG carriers is expected to result in the increase in the size of the world LNG and LPG fleets over the next few years. An over-supply of vessel capacity, combined with stability or any decline in the demand for LNG or LPG carriers, may result in a reduction of charter hire rates.
We may have more difficulty entering into long-term, fixed-rate LNG time-charters if the active short-term, medium-term or spot LNG shipping markets continue to develop.
LNG shipping historically has been transacted with long-term, fixed-rate time-charters, usually with terms ranging from 15 to 20 years. One of our principal strategies is to enter into additional long-term, fixed-rate LNG time-charters. In recent years, the amount of LNG traded on a spot and short-term basis (defined as contracts with a duration of 4 years or less) has been increasing. In 2019, spot and short-term trades accounted for approximately 30% of global LNG trade.

If the active spot, short-term or medium-term markets continue to develop, we may have increased difficulty entering into long-term, fixed-rate time-charters for our LNG carriers and, as a result, our cash flow may decrease and be less stable. In addition, an active short-term, medium-term or spot LNG market may require us to enter into charters based on changing market prices, as opposed to contracts based on a fixed rate, which could result in a decrease in our cash flow in periods when the market price for shipping LNG is depressed.
Over time, the value of our vessels may decline, which could adversely affect our operating results.
Vessel values for LNG and LPG carriers can fluctuate substantially over time due to a number of different factors, including:

16




prevailing economic conditions in natural gas and energy markets;
a substantial or extended decline in demand for natural gas, LNG or LPG;
competition from more technologically advanced vessels;
increases in the supply of vessel capacity; and
the cost of retrofitting or modifying existing vessels, as a result of technological advances in vessel design or equipment, changes in applicable environmental or other regulation or standards, or otherwise.

Vessel values may decline from existing levels. If the operation of a vessel is not profitable, or if we cannot redeploy a chartered vessel at attractive rates upon charter termination, rather than continue to incur costs to maintain and finance the vessel, we may seek to dispose of it. Our inability to dispose of the vessel at a fair market value or the disposal of the vessel at a fair market value that is lower than its book value could result in a loss on its sale and adversely affect our results of operations and financial condition. Further, if we determine at any time that a vessel’s future useful life and earnings require us to impair its value on our financial statements, we may need to recognize a significant charge against our earnings.
We have recognized vessel and goodwill write-downs in the past and we may recognize additional write-downs in the future, which will reduce our earnings and net assets.
If we determine at any time that a vessel’s value or goodwill has been impaired, we may need to recognize an impairment charge that will reduce our earnings and net assets. We review our vessels for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable, which occurs when an asset's carrying value is greater than the estimated undiscounted future cash flows the asset is expected to generate over its remaining useful life. We review our goodwill for impairment annually and if a reporting unit's goodwill carrying value is greater than the estimated fair value, the goodwill attributable to that reporting unit is impaired.

A reduction in our net assets could result in a breach of certain financial covenants contained in our credit agreements, which could limit our ability to borrow additional funds under our credit facilities or require us to repay outstanding amounts. This could harm our business, results of operations, financial condition, ability to raise capital or ability to pay distributions. For the write-downs that occurred during 2019, please read "Item 5 – Operating and Financial Review and Prospects: Management's Discussion and Analysis of Financial Condition and Results of Operations – Year Ended December 31, 2019 versus Year Ended December 31, 2018", "Item 18 – Financial Statements: Note 8 – Intangible Assets and Goodwill" and "Item 18 – Financial Statements: Note 19 – Gain (Loss) on Sales and Write-Down of Vessels."
Increased technological innovation in vessel design or equipment could reduce our charter hire rates and the value of our vessels.
The charter hire rates and the value and operational life of a vessel are determined by a number of factors, including the vessel’s efficiency, operational flexibility and physical life. Efficiency includes speed, fuel economy and the ability for LNG or LPG to be loaded and unloaded quickly. More efficient vessel designs, engines or other features may increase overall vessel efficiency. Flexibility includes the ability to access LNG and LPG storage facilities, utilize related docking facilities and pass through canals and straits. Physical life is related to the original design and construction, maintenance and the impact of the stress of operations. If new LNG or LPG carriers are built that are more efficient or flexible or have longer physical lives than our vessels, competition from these more technologically advanced LNG or LPG carriers could reduce recharter rates available to our vessels and the resale value of the vessels. As a result, our business, results of operations and financial condition could be harmed.
Actual results of new technologies or technologies upgrades may differ from expected results and affect our results of operations.
We have invested and are investing in technology upgrades such as MEGI twin engines and other equipment and designs for certain LNG carriers, including, among other things, to improve fuel efficiency and vessel performance. These new engine designs and other equipment may not perform to expectations, which may result in performance issues or claims based on failure to achieve specification included in charter party agreements. Actual fuel consumption for our MEGI LNG carriers exceeds specified levels in certain charter party agreements, which may result in reimbursement by us to the charterer for the cost of the excess fuel consumed. The amount of the reimbursements generally will increase to the extent fuel prices increase, including as a result of the IMO 2020 regulations that took effect on January 1, 2020 and limit Sulfur content in vessel fuel oils. We are installing additional equipment to lower fuel consumption on some of these vessels. Continued reimbursement obligations, unrecovered capital expenditures or new equipment installations not performing to our expectations could harm our results of operations or financial condition.
We or our joint venture partners may be unable to operate an LNG receiving and regasification terminal and may be exposed from time to time to conditions, developments, or requirements that may adversely affect us or our joint venture.
We have a 30% ownership interest in an LNG regasification and receiving terminal in Bahrain (please read “Item 18 – Financial Statements: Note 7a(i) – Equity-Accounted Joint Ventures”). Although the Bahrain LNG Joint Venture has completed mechanical construction and commissioning of the Bahrain terminal and is currently receiving terminal use payments, certain handover arrangements in respect of the Bahrain terminal remain subject to the approval of the lenders of the Bahrain LNG Joint Venture. As a result, the Bahrain LNG Joint Venture may experience associated delays in the formal acceptance of the terminal and the commencement of commercial operations if the Bahrain LNG Joint Venture does not satisfy all applicable conditions and obtain all necessary consents in accordance with its financing agreements.

17



Accordingly, we or our joint venture partners may be unable to operate the LNG receiving and regasification terminal properly, whether due to a lack of satisfaction of such conditions, a lack of obtaining such consents, a lack of industry experience, or otherwise, which could affect our ability to operate the terminal, including as a result of a reduction in the expected output of the terminal. Any such reduction could decrease revenues to the Bahrain LNG Joint Venture which may harm our business, results of operations and financial condition.

In addition, the development, construction and operation of large-scale energy and regasification projects, such as the Bahrain terminal, are inherently subject to unforeseen conditions or developments. Such conditions or developments may include, among others: shortages or delays in deliveries of equipment, materials or labor; significant cost over-runs; labor disruptions; government issues; regulatory changes; legal disputes with third-parties, including contractors, sub-contractors and customers; investigations involving various authorities; adverse weather conditions; unanticipated increases in equipment, material or labor costs; reductions in access to financing, an increase in the amount of required support from shareholders of the Bahrain LNG Joint Venture under the terms of the financing, the ability to comply with all conditions and requirements under the terms of the financing, and the ability to obtain any applicable waivers or consents from our lenders on a timely basis or at all; unforeseen engineering, technical and technological design, environmental, infrastructure or engineering issues; the inability to operate the Bahrain terminal at its full designed capacity; a temporary shutdown of the Bahrain terminal; and a general inability to realize the anticipated benefits of the Bahrain terminal, including all the benefits associated with the long-term contract with the customer. In the event that one or more of these conditions or developments were to materialize or continue for a prolonged period (in particular, any legal disputes with third parties or the Bahrain LNG Joint Venture’s inability to comply with all conditions and requirements under the terms of its financing or obtain any applicable waivers or consents from its lenders under the terms of its financing), our business, results of operations and financial condition could be harmed.
Climate change and greenhouse gas restrictions may adversely impact our operations and markets.
Due to concern over the risk of climate change, a number of countries have adopted, or are considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These regulatory measures include, among others, adoption of cap and trade regimes, carbon taxes, increased efficiency standards, and incentives or mandates for renewable energy. Compliance with changes in laws, regulations and obligations relating to climate change could increase our costs related to operating and maintaining our vessels and require us to install new emission controls, acquire allowances or pay taxes related to our greenhouse gas emissions, or administer and manage a greenhouse gas emissions program. Revenue generation and strategic growth opportunities may also be adversely affected.
Adverse effects upon the oil and gas industry relating to climate change may also adversely affect demand for our services. Although we do not expect that demand for oil and gas will lessen dramatically over the short term due to climate change, in the long term, climate change may reduce the demand for oil and gas or increased regulation of greenhouse gases may create greater incentives for use of alternative energy sources. Any longer term material adverse effect on the oil and gas industry could have a significant financial and operational adverse impact on our business that we cannot predict with certainty at this time.
We may be unable to make or realize expected benefits from acquisitions, and implementing our strategy through acquisitions may harm our business, financial condition and operating results.
Part of our strategy includes acquiring existing LNG and LPG carriers or LNG and LPG shipping businesses as the opportunities arise. Historically, there have been very few purchases of existing vessels and businesses in the LNG and LPG shipping industries. Factors that may contribute to a limited number of acquisition opportunities in the LNG and LPG shipping industries in the near term include the relatively small number of independent LNG and LPG fleet owners and the limited number of LNG and LPG carriers not subject to existing long-term charter contracts. In addition, competition from other companies could reduce our acquisition opportunities or cause us to pay higher prices.

Any acquisition of a vessel or business may not be profitable to us at or after the time we acquire it and may not generate cash flow sufficient to justify our investment. In addition, acquisitions may expose us to risks that may harm our business, financial condition and operating results, including risks that we may:

fail to realize anticipated benefits, such as new customer relationships, cost-savings or cash flow enhancements;
be unable to hire, train or retain qualified shore and seafaring personnel to manage and operate our growing business and fleet;
decrease our liquidity by using a significant portion of our available cash or borrowing capacity to finance acquisitions;
significantly increase our interest expense or financial leverage if we incur additional debt to finance acquisitions;
incur or assume unanticipated liabilities, losses or costs associated with the business or vessels acquired; or
incur other significant charges, such as impairment of goodwill or other intangible assets, asset devaluation or restructuring charges.

Unlike newbuildings, existing vessels typically do not carry warranties as to their condition. While we generally inspect existing vessels prior to purchase, such an inspection would normally not provide us with as much knowledge of a vessel’s condition as we would possess if it had been built for us and operated by us during its life. Repairs and maintenance costs for existing vessels are difficult to predict and may be substantially higher than for vessels we have operated since they were built. These costs could decrease our cash flow and reduce our liquidity.
Marine transportation is inherently risky, and an incident involving significant loss of or environmental contamination by any of our vessels could harm our reputation and business.

18



Our vessels, crew and cargoes are at risk of being damaged, injured or lost because of events such as:

marine disasters;
bad weather or natural disasters;
mechanical failures;
grounding, fire, explosions and collisions;
piracy (hijacking and kidnapping);
cyber attack;
human error; and
war and terrorism.

An accident involving any of our vessels could result in any of the following:

death or injury to persons, loss of property or environmental damage;
delays in the delivery of cargo;
loss of revenues from or termination of charter contracts;
governmental fines, penalties or restrictions on conducting business;
higher insurance rates; and
damage to our reputation and customer relationships generally.
Any of these results could have a material adverse effect on our business, financial condition and operating results. In addition, any damage to, or environmental contamination involving, oil production facilities serviced by our vessels could result in the suspension or curtailment of operations by our customer, which would in turn result in loss of revenues.
Our insurance may be insufficient to cover losses that may occur to our property or result from our operations.
The operation of LNG and LPG carriers is inherently risky. Although we carry hull and machinery (marine and war risks) and protection and indemnity insurance, all risks may not be adequately insured against, and any particular claim may not be paid. In addition, only certain of our LNG and LPG carriers carry insurance covering the loss of revenues resulting from vessel off-hire time based on its cost compared to our off-hire experience. Any significant off-hire time of our vessels could harm our business, operating results and financial condition. Any claims covered by insurance would be subject to deductibles, and since it is possible that a large number of claims may be brought, the aggregate amount of these deductibles could be material. Certain of our insurance coverage is maintained through mutual protection and indemnity associations, and as a member of such associations we may be required to make additional payments over and above budgeted premiums if member claims exceed association reserves.

We may be unable to procure adequate insurance coverage at commercially reasonable rates in the future. For example, more stringent environmental regulations have led in the past to increased costs for, and in the future may result in the lack of availability of, insurance against risks of environmental damage or pollution. A catastrophic oil spill, marine disaster or natural disasters could result in losses that exceed our insurance coverage, which could harm our business, financial condition and operating results. Any uninsured or underinsured loss could harm our business and financial condition. In addition, our insurance may be voidable by the insurers as a result of certain of our actions, such as our ships failing to maintain certification with applicable maritime regulatory organizations.

Changes in the insurance markets attributable to terrorist attacks, outbreaks of communicable diseases, environmental catastrophes, or political change may al