U.S. sanctions on COSCO hit Teekay's Yamal LNG tanker JV
Reuters
Published Sep 30, 2019 11:34
U.S. sanctions on COSCO hit Teekay's Yamal LNG tanker JV
LONDON (Reuters) - U.S. sanctions on two units of Chinese shipper COSCO hit the liquefied natural gas (LNG) tanker industry on Monday as U.S.-listed Teekay LNG (N:TGP) said its joint venture in Russia had been "blocked" for its ties to COSCO.
The United States imposed sanctions on the two units - COSCO Shipping Tanker (Dalian) Co, Ltd and its subsidiary COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co, Ltd - for allegedly carrying Iranian crude oil.
Teekay LNG said on Monday its 50-50 Yamal LNG Joint Venture had been deemed a "blocked person" under the sanctions as its partner China LNG Shipping (Holding) Limited (CLNG) is 50% owned by COSCO Dalian.
"As a result of CLNG’s 50% interest, the Yamal LNG Joint Venture also currently qualifies as a "Blocked Person" under OFAC rules," Teekay said in a statement, referring to the Executive Office of Foreign Assets Control (OFAC) Order.
The venture owns four operational Arc7 ice-breaking tankers - the Eduard Toll, Rudolf Samoylovich, Nikolay Yevgenov and Vladimir Voronin - which carry gas from the massive Yamal LNG production facility in the Russian Arctic.
Yamal LNG is operated by Russian independent gas producer Novatek (MM:NVTK).
A fifth Teekay Arc7 tanker, the Georgiy Ushakov, is heading to Yamal, having been built and tested over the summer around South Korea's Daewoo Shipbuilding and Marine Engineering (DSME) (KS:042660) shipyard. A sixth, Yakov Gakkel, is undergoing sea trials.
A Novatek spokeswoman declined to comment immediately.
Due to the Arctic conditions, the ice-breaking ARC7s are critical for carrying LNG produced at Yamal westwards to Europe and eastwards to Asia.
There are currently 14 such tankers in operation with Dynagas (N:DLNG), Sovcomflot and Mitsui OSK Lines (T:9104) owning the others.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.