Teekay LNG explained that the latest development comes on the back of an ownership restructuring undertaken by COSCO Shipping Energy Transportation.
The move resulted in Teekay LNG’s joint venture partner China LNG no longer being classified as a “blocked person” under the Office of Foreign Assets Control (OFAC) rules.
Accordingly, the joint venture, which owns four on-the-water Arc7 LNG carriers and two Arc7 LNG carrier newbuildings, is also no longer classified as a “blocked person” under OFAC rules.
The four existing LNG carriers are continuing to operate under their long-term contracts transporting gas from the Yamal LNG project, operated by Russian independent gas producer Novatek, while the remaining two newbuildings are scheduled for delivery in the fourth quarter of 2019.
In late September 2019, the U.S. imposed sanctions against two COSCO companies, COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co., for allegedly transporting Iranian crude.
As earlier explained, COSCO Dalian was a direct 50% shareholder in China LNG and, although China LNG itself was not listed on the OFAC sanctions order, it qualified as a “blocked person” due to its ownership structure.