Teekay Corp. has made an agreement with Merrill Lynch Commodities Inc. to jointly develop a project to convert the S/S Arctic Spirit into a floating liquefied natural gas (FLNG) plant to be moored alongside a pier near Kitimat, British Columbia. Teekay LNG Partners LP will have an option to participate in the project as well. The converted Vessel would have the production capacity to liquefy 75-100 million standard cu/ft per day of pipeline quality gas, or, approximately 0.5 million tns/yr of LNG. The project is expected to commence LNG operations in 2012, subject to obtaining the necessary regulatory and local approvals.