Teekay LNG Partners L.P. Becomes a Publicly Traded Partnership Through its Successful IPO

PORTLAND, ORE. (July 5, 2005) – In May Teekay LNG Partners L.P. (NYSE: TGP) became a publicly traded partnership through its initial public offering in which it raised $151.8 million in gross proceeds.

In the offering, the partnership issued 6,900,000 common units at a price of $22.00 per unit. These units represent a 22.3% ownership interest in the partnership, with Teekay Shipping Corporation owning the remaining limited and general partner interests.

Teekay Shipping Corporation recently formed Teekay LNG Partners as part of its strategy to expand operations in the rapidly growing liquefied natural gas (or LNG) shipping sector. Teekay Shipping Corporation, which transports more than 10 percent of the world's seaborne crude oil, is the world's largest owner and operator of medium-sized crude oil tankers.

Teekay LNG Partners' CEO, Peter Evensen, rang the Opening BellSM at the New York Stock Exchange on May 12 to celebrate the IPO.

The offering is noteworthy for a number of "firsts" for a publicly traded partnership. It is the first IPO by a limited partnership engaged in long-haul shipping, the first involving a company focused on LNG, and the first by a non-U.S. entity (Teekay LNG Partners L.P. is organized in the Marshall Islands).

Teekay's primary legal advisors on the IPO were Perkins Coie LLP and Vinson & Elkins LLP. Legal work on the IPO provided by Perkins Coie was headed by David Matheson and Chris Hall, partners in the firm's national business practice, who work in the Portland office.

"One of many benefits working with great companies like Teekay Shipping is the opportunity to do this type of interesting, challenging work," said Matheson. "This deal was complex in a number of ways, but we enjoyed great collaboration among all parties involved."

Perkins Coie has also worked with Teekay Shipping Corporation on a number of transactions over the years, including its IPO and NYSE listing in 1995, follow-on debt and equity public offerings, Rule 144A and shelf offerings, and shareholders' rights and dividend reinvestment plans. The firm has also counseled Teekay Shipping on U.S. securities law compliance and corporate governance matters.

"As we have grown over the years, Perkins Coie has consistently played an important role guiding us through the legal aspects related to our capital raising activities and public company status," said Arthur Bensler, Senior Vice President and General Counsel of Teekay. "Their terrific work on this complicated IPO reflects the type of service and expertise we've come to expect from them."

About Teekay LNG Partners L.P.: Teekay LNG Partners L.P. is a Marshall Islands partnership recently formed by Teekay Shipping Corporation as part of its strategy to expand its operations in the liquefied natural gas (or LNG) shipping sector. Teekay LNG Partners provides LNG and crude oil marine transportation services under long-term, fixed-rate contracts with major energy and utility companies through its fleet of seven LNG carriers and five Suezmax class crude oil tankers. Three of the seven LNG carriers are newbuildings scheduled for delivery in late 2006 and early 2007, in which Teekay LNG Partners will hold at least a 70% interest.

About Teekay Shipping Corporation: Teekay Shipping Corporation transports more than 10 percent of the world's sea-borne oil and has recently expanded into the liquefied natural gas shipping sector. With a fleet of approximately 145 tankers, offices in 14 countries and approximately 5,500 seagoing and shore-based employees, Teekay Shipping Corporation provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay's reputation for safety, quality and innovation has earned it a position with its customers as a premier marine midstream company.