Teekay and Cosco resolve Yamal LNG sanction issues

Teekay and Cosco resolve Yamal LNG sanction issues

Teekay LNG and China LNG Shipping’s 50/50 Yamal LNG joint venture has been cleared from US sanctions, after Cosco restructured its ownership in China LNG Shipping.

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

According to Teekay, CEST has now completed an ownership restructuring on arms-length terms which has resulted in China LNG Shipping no longer being classified as a “blocked person” under the Office of Foreign Assets Control (OFAC) rules.

Accordingly, the Yamal LNG joint venture, which owns six LNG carriers, has cleared its sanctions status.

The four existing LNG carriers are operating under their long-term contracts transporting gas from the Yamal LNG project and the another two LNG carrier newbuildings are expected to deliver in the fourth quarter of this year.

Following the announcement, share prices of Teekay Corporation and Teekay LNG Partners surged by around 22.4% and 17.3% respectively.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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