Teekay LNG Releases Resolution To China LNG Joint Venture Issues

Teekay LNG Releases Resolution To China LNG Joint Venture Issues 1

Referring to the press conference that was issued on the 30th of September, 2019,it was announced by Teekay Corporation (Teekay) and Teekay LNG Partners L.P. (Teekay LNG) that restructuring of ownership on arms lenghths terms has been completed by COSCO Shipping Energy Transportation Co. Ltd. This has thus resulted to Teekay LNG’s joint venture partner, China LNG Shipping (Holdings) Ltd. (China LNG) being not classified as a ‘Block Person’ any more under the Office of Foreign Assets Control (OFAC) rules.

According to this, the joint venture of Teekay LNG’s 50/50 and China LNG that owns four on-the-water ARC7 LNG carriers and two ARC7 LNG carrier newbuildings, is also no more classified as a “Blocked Person” under OFAC rules.

Under the long term contracts of transportation of gas from the Yamal LNG project, the operations of the four already existing ARC7 LNG carriers continues to operate. The other two ARC7 LNG carrier newbuildings are estimated to be delivered in the fourth quarter of 2019.

After the resolution of the issue, the Teekay Group is planning to reschedule the investor and analyst meeting that was postponed earlier and is expected to give out the details soon.

 

Reference: teekay

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