Teekay LNG Partners L.P. Declares First Quarter Distribution

Hamilton, Bermuda – May 4, 2009

Dear fellow unitholder,

I am pleased to inform you that the board of Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (the Partnership), has declared a cash distribution of $0.57 per unit for the quarter ended March 31, 2009, which is unchanged from the previous quarter. The cash distribution is payable on May 15, 2009 to all unitholders of record on May 8, 2009.

Teekay LNG Partners remains well-positioned in the current economic environment:
• Our distribution is supported by long-term (10 to 25 years remaining) fixed-rate contracts
• Our financial profile supports a stable distribution
• Our recent $70 million follow-on equity offering has increased our already strong liquidity position to over $550 million and will be used to take delivery of our 2009 capital expenditure program

The Partnership’s cash flows are generated from long-term fixed-rate contracts with creditworthy counterparties. Our contracts have operating cost escalators and they are not exposed to commodity price fluctuations, which leads to our stable distribution. Since our IPO in May 2005, we have paid a distribution in every quarter and grown our distribution by an average of 8 percent per year. Based on the May 1, 2009 closing price of $17.75 per unit, our first quarter distribution of $0.57 per unit represents an annualized yield of 13 percent.

We are committed to prudently managing our balance sheet to ensure we have the flexibility to take advantage of future growth opportunities. The Partnership has a favorable debt profile with no covenant concerns and no refinancing requirements until December 2011.

We are excited about our scheduled growth over the next few years, which will further add to our distributable cash flow. We took delivery of the first of five newbuilding LPG carriers in April 2009 and anticipate delivery of the second vessel in the fourth quarter of 2009. Also in the second quarter of 2009, we expect to complete the previously announced purchase of a 70 percent interest in the two Tangguh LNG carriers. In addition to these confirmed vessels, the Partnership has the right to acquire a 33 percent interest in the Angola LNG project, which includes four newbuild LNG carriers, from Teekay Corporation prior to the delivery of these vessels in 2011 and 2012.

The Partnership’s liquidity, which currently stands at over $550 million, includes approximately $70 million of net proceeds from the follow-on public equity offering completed in March 2009. In addition, a loan facility has been arranged for the debt portion of two Tangguh LNG carriers and we expect to receive a commitment to finance all five LPG newbuildings. With these facilities in place, we will require only $120 million to complete our entire newbuild program which can be sourced from our available liquidity and/or cash flow.

We thank you for your continued interest in Teekay LNG Partners and look forward to updating you again on our progress in the near future.

Sincerely,
Peter Evensen
Chief Executive Officer, Teekay GP LLC

About Teekay LNG Partners
Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE: TK) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners 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 fifteen LNG carriers, six LPG carriers and eight Suezmax class crude oil tankers. Two of the fifteen LNG carriers are newbuildings scheduled for delivery to the Partnership in the first half of 2009. Four 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.