Chinese/US LNGC sanction issues resolved

Thursday, 31 October 2019
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Teekay Corp and Teekay LNG Partners have confirmed that COSCO Shipping Energy Transportation has completed an ownership restructuring on arms-length terms, due to US sanctions. 

As a result, Teekay LNG’s joint venture partner, China LNG Shipping (Holdings), is no longer being classed as a ‘Blocked Person’ under US Office of Foreign Assets Control (OFAC) rules.

Accordingly, Teekay LNG’s 50/50 joint venture with China LNG, which owns four Arc7s plus two Arc7 newbuildings, is also no longer classified as a ‘Blocked Person’ under OFAC rules.

The four operational Arc7s are continuing to operate under their long-term contracts transporting gas from the Yamal LNG project and the remaining two newbuildings are expected to be delivered in the fourth quarter of this year, Teekay said.

Yamal LNG operator Novatek commented that it had also received notification from TC LNG Shipping (TC LNG), the joint-venture owning the Arc7s, that the company was no longer considered a ‘Blocked Person’ under the US OFAC rules.

TC LNG, a joint-venture between Teekay LNG and China LNG Shipping (Holdings), owns seven Arc7s that are continuing to serve the Yamal LNG project, Novatek said.

Arc7 deliveries

Meanwhile, the latest Arc7 has entered into service recently.

Another was believed to be waiting outside Yamal LNG’s plant, according to Refinitiv shipping data.

‘Nikolay Urvantsev’ has delivered her first cargo from Novatek-operated Yamal LNG plant, to France, while ‘Georgiy Ushakov’ was reported to be stationary just outside the entrance of the Gulf of Ob last week.

‘Georgiy Ushakov’ is one of six Icebreaking LNGCs that is owned by the 50-50 joint venture involving Teekay LNG and China LNG Shipping, a unit of COSCO Dalian (see above).

The seventh and last of the Arc7s to be built by Daewoo, ‘Yakov Gakkel’, was still thought to be on trials. She is also owned by the Teekay/China LNG Shipping venture. 

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