Teekay LNG Partners is proposing to become a corporation for tax reasons.
The US-listed company said the end of its partnership status would encourage more investment from big institutions.
The move is subject to approval by unitholders, who will enjoy an easier tax-reporting process.
CEO Mark Kremin said: “The board is recommending that Teekay LNG elect to be treated as a corporation, instead of a partnership, for US federal income tax purposes, which we believe is in the best interests of our current and future unitholders because, by eliminating the burdensome K-1 reporting, we anticipate that Teekay LNG will be a more attractive investment for larger, institutional investors."
