Date: 30 September 2019 , 15:27
News ID: 6551

US Sanctions on COSCO Hit LNG Tanker Industry

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.
US Sanctions on COSCO Hit LNG Tanker Industry

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.

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.