TC LNG Shipping No Longer Blocked from Yamal LNG

TC LNG, the joint venture between Teekay LNG and China LNG Shipping (Holdings) Limited (CLNG) is cleared for transporting Russian LNG, the operator of Yamal LNG Novatek said October 22.

TC LNG has four operational winterised Arc7 LNG tankers which continue to carry out LNG transport for Yamal LNG as usual, Novatek said. Cosco Dalian is a direct 50% shareholder in CLNG, and while CLNG was not itself listed on the US list of sanctioned companies, Teekay LNG said, Cosco Dalian was on the list. That made CLNG a 'blocked person' under US law, owing to its parent's alleged involvement in transporting Iranian crude oil.

"For clarity, the Teekay Group has not traded and will not trade with Iran and will not act in contravention of any trading sanctions," it said as it announced the postponement of its October 2 investor day, "in order to fully focus on avoiding undue disruption to Teekay LNG’s business from certain complex issues that have recently emerged." 

Another joint venture, between Mitsui OSK Lines (MOL) and Cosco, was unaffected. MOL has three Arc7 vessels and four conventional vessels jointly owned with Cosco Shipping LNG Investment (Shanghai) Co, and this particular company has no relationship with Cosco Dalian. "MOL has no vessel that has been affected by the US sanction," a company official said.