May 5, 2005

Teekay LNG prices its IPO to raise $132 million

Teekay LNG Partners L.P. (NYSE:TGP) says that it has priced its initial public offering of 6,000,000 of its common units at $22.00 per unit. The common units will trade on the New York Stock Exchange under the symbol "TGP."

Teekay LNG Partners 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 L.P. 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 percent interest

The 6,000,000 common units represent a 20 percent ownership interest in the master limited partnership. Teekay Shipping Corporation (NYSE:TK) owns the remaining interests in the partnership, including common units, subordinated units and its general partner interest. Teekay LNG Partners L.P. has granted the underwriters a 30-day option to purchase up to an additional 900,000 common units to cover any overallotments.

The book-running manager of the initial public offering is Citigroup Global Markets Inc. and UBS Investment Bank is acting as co-lead manager. Other co-managers include A.G. Edwards, Wachovia Securities, Raymond James, Jefferies & Company, Inc. and Deutsche Bank Securities. A copy of the final prospectus relating to the offering may be obtained from Citigroup Global Markets Inc., at Citigroup Global Markets Inc., c/o Prospectus Department, 140 58th Street, Brooklyn, New York, 11220; fax: 718-765-6734; phone: 718-765-6732.

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