Teekay LNG Partners L.P. Announces Increase to Third Quarter Distribution

Hamilton, Bermuda – November 3, 2008 - Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE: TGP), has declared a cash distribution of $0.57 per unit for the quarter ended September 30, 2008, an increase of $0.02 per unit, or 4 percent, from the previous quarter.

“We are pleased to announce another increase to the Partnership’s quarterly distribution,” commented Peter Evensen, Chief Executive Officer of Teekay GP LLC. “This increase reflects the contribution from the four RasGas 3 LNG carriers delivered between May and July this year. Combined with the $0.02 per unit increase last quarter as a result of the Partnership’s acquisition in April of the Kenai LNG Carriers, this represents a total increase in our distribution of 8 percent this year and reflects our confidence in the Partnership’s long-term, fixed-rate cash flows and contract counterparties.”

The cash distribution is payable on November 14, 2008 to all unitholders of record on November 7, 2008.

About Teekay LNG Partners L.P.

Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (Teekay) (NYSE: TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time charter contracts with major energy and utility companies through its fleet of 15 LNG carriers, six LPG carriers and eight Suezmax class crude oil tankers. Two of the 15 LNG carriers are newbuildings scheduled for delivery between late-2008 and early-2009. Five of the six LPG carriers are newbuildings scheduled for delivery in 2009 and 2010.

Teekay LNG Partners’ common units trade on the New York Stock Exchange under the symbol “TGP”.

Teekay LNG Partners L.P.