Teekay resolves COSCO sanctions connection in Yamal LNG operations


The world’s largest independent owners and operators of LNG carriers, Teekay LNG and China LNG Shipping, which are 50/50 Yamal LNG joint venture have been cleared from US sanctions after COSCO restructured its ownership in China LNG Shipping.

The joint venture was blocked in on the 25 of September after the US imposed sanctions on 2 units of COSCO Shipping Energy Transportation (CSET), including COSCO Shipping Tanker (Dalian) which owns a 50% interest of China LNG Shipping.

COSCO Shipping Energy Transportation has carried out an ownership restructuring which has resulted in Teekay LNG’s joint venture partner, China LNG Shipping (Holdings), no longer being classified as a “Blocked Person” under Office of Foreign Assets Control (OFAC) rules.

Accordingly, Teekay LNG’s 50/50 joint venture with China LNG, which owns 4 on-the-water ARC7 LNG carriers and 2 ARC7 LNG carrier newbuilds, is also no longer classified as a “Blocked Person” under OFAC rules.

The 4 existing ARC7 LNG carriers continue to operate under their long-term contracts transporting gas from the Yamal LNG project and the remaining 2 ARC7 LNG carrier newbuilds are scheduled for delivery in Q4 2019.

The share prices of Teekay Corporation and Teekay LNG Partners raised by around 22.4% and 17.3% accordingly.