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Teekay's Yamal LNG tanker JV 'blocked' due to U.S. sanctions on China's COSCO

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By Reuters
Teekay's Yamal LNG tanker JV 'blocked' due to U.S. sanctions on China's COSCO
FILE PHOTO: A China Ocean Shipping Company (COSCO) container ship is seen at San Antonio port in Chile August 6, 2019. REUTERS/Rodrigo Garrido/File Photo   -   Copyright  Rodrigo Garrido(Reuters)

LONDON (Reuters) – Teekay LNG’s <TGP.N> liquefied natural gas (LNG) tanker venture, the Yamal LNG Joint Venture, has qualified as a “blocked person” under U.S. sanctions imposed last week against two units of Chinese shipping giant COSCO for allegedly shipping Iranian oil.

U.S.-listed Teekay Group <TGP.N> said on Monday COSCO Dalian, one of the two COSCO units, is a direct 50% shareholder of China LNG Shipping (Holding) Limited (CLNG), which in turn holds a 50% stake in Yamal LNG Joint Venture.

“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 Yamal LNG Joint Venture owns four Arc7 LNG tankers which ship LNG from Yamal LNG, a massive production facility operated by Russian independent gas producer Novatek <NVTK.MM> in the Russian Arctic.

(Reporting by Sabina Zawadzki and Ekaterina Kravtsova; editing by Jason Neely)