MOSCOW (Pakistan Point News / Sputnik - 30th September, 2019) The sanctions that were recently imposed by the US Office of Foreign Assets Control (OFAC) on the China Ocean Shipping Company Limited (COSCO), will not affect the Yamal project's liquefied natural gas (LNG) supplies, Russia's second largest gas producer, Novatek, said in a statement on Monday.
On September 25, OFAC included the company's divisions � COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. � into the US Treasury Department's Specially Designated Nationals List, which prohibits US companies from doing business with the sanctioned entities and individuals, for the alleged breach of sanctions on Iran. COSCO Dalian owns 50 percent of China LNG Shipping, which, in turn, has a 50 percent share in a joint venture with Canada's Teekay LNG � the Yamal LNG Joint Venture. This venture owns four Arc7 class tankers of the Yamal LNG project's fleet.
"These specific LNG shipments are not related to the sanctions imposed on COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. The issue to resolve this situation is a business relations matter between Teekay LNG and China LNG Shipping (Holdings) Limited. The Yamal LNG project has all the necessary capacities to ensure supplies of LNG produced to customers in accordance with contractual obligations within the agreed timelines," the statement said.
The Yamal LNG project envisions building infrastructure to produce, liquefy and ship natural gas from the Yuzhno-Tambeyskoye field located in the Yamalo-Nenets Autonomous Area. The project was created as a joint venture between Novatek, the main shareholder, France's Total, the China National Petroleum Corporation and the Silk Road Fund.
