Teekay LNG's liquefied natural gas (LNG) tanker venture, the Yamal LNG Joint Venture, is no longer subject to U.S. sanctions after a change of ownership at its partner China LNG Shipping (Holdings) Ltd, Teekay companies said late on Tuesday.
Teekay LNG and China LNG Shipping each own half of Yamal LNG Joint Venture. The company owns four specialised Arc7 LNG tankers, or "ice class carriers", which ship LNG from Yamal LNG, a massive production facility operated by Russian independent gas producer Novatek in the Russian Arctic.
The joint venture was blocked in late September after the United States imposed sanctions on two units of COSCO Shipping Energy Transportation Co Ltd, including COSCO Shipping Tanker (Dalian) which owns China LNG Shipping.
The sanctions caused shipping costs for oil and LNG to more than double across the globe.
China LNG Shipping is no longer "classified as a "Blocked Person" under Office of Foreign Assets Control (OFAC) rules" after COSCO Shipping completed an ownership restructuring on arms-length terms, Teekay Corp and its subsidiary Teekay LNG said in a statement.
Cosco Shipping could not be immediately reached for comment.
"The four existing ARC7 LNG carriers are continuing to operate under their long-term contracts transporting gas from the Yamal LNG project and the remaining two ARC7 LNG carrier newbuildings are expected to deliver in the fourth quarter of 2019," Teekay said.
Teekay has a controlling stake in Teekay LNG, which is the world's third-largest independent owner and operator of LNG carriers.
Reporting by Singapore energy team