US Sanctions on COSCO Hit LNG Tanker Industry

EghtesadOnline: US sanctions on two units of Chinese shipper COSCO hit the liquefied natural gas tanker industry on Monday as US-listed Teekay LNG said its joint venture in Russia had been “blocked” for its ties to COSCO.

News ID: ۷۴۸۵۹۶

01 October 2019

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, Reuters reported.

Teekay LNG said 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 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 order, according to Financial Tribune.

Yamal LNG is operated by Russian independent gas producer Novatek.

A fifth Teekay Arc7 tanker is heading to Yamal, having been built and tested over the summer around South Korea’s Daewoo Shipbuilding and Marine Engineering shipyard. A sixth tanker is undergoing sea trials.