COSCO transfers CLNG stake to bypass US sanctions

Chinese shipping firm COSCO Dalian has transferred a 50pc stake in China LNG Shipping (CLNG) to its parent company, in a move that exempts 12 LNG carriers from US sanctions.

COSCO Dalian, which has been under US Treasury Department sanctions since last month, transferred its 50pc stake in CLNG to its parent company COSCO Shipping Energy Transportation, the parent firm said.

The transfer means that the 12 LNG vessels owned by CLNG will no longer be under sanctions. The US Treasury last month imposed sanctions on COSCO Dalian and any subsidiaries in which the firm held a stake of at least 50pc. The firm held 50pc equity in CLNG, with the rest held by other COSCO entities which are not under sanctions.

The exemption of these vessels from US sanctions may ease demand for spot charters in the LNG freight market. Spot charter rates in the Asia-Pacific basin rose earlier this month, possibly also reflecting the additional demand for spot charters as firms sought replacement vessels for some of CLNG's 12 LNG carriers.

Six of these are Arc7 ice-class vessels, under a joint venture with Bermuda-based Teekay Partners, and are provided to the Novatek-operated 16.5mn t/yr Yamal LNG project. Novatek reported on 22 October that this venture — named TC LNG Shipping — was no longer considered a blocked person by the US Treasury, likely as a result of this equity transfer.

The remaining six, conventional LNG carriers owned by CLNG operate in the Pacific basin, transporting LNG to Chinese import terminals.

News No: 6957
Date: 2019/10/24 - 16:39
News Source: Argus Media

COSCO transfers  CLNG  US sanctions  shipping  Chinese 


Leave a Comment:


Petrobras touts lasting Chinese thirst for pre-salt oil

Brazil's state-controlled Petrobras is touting China's persistent appetite for its pre-salt crude and is promising to boost supply if needed despite thinner sales margins.

Full Chinese tanks pressure methanol sellers

Methanol sellers in Asia and the Middle East are under pressure to cut production rates or face demurrage costs as Chinese storage tanks have no space left.

Chinese steel exports fall in April

China's steel exports in April fell by 2.6pc to 6.31mn t from March, as Chinese mills shifted supply to domestic markets to meet recovering demand.

New Iran-Oman Shipping Route

The third shipping route between Iran and Oman will be launched in the coming days, says Hamid Zadboum, the head of Ports and Maritime Organization.

Chinese coal producers set floor price to halt slide

Major Chinese coal producers have set a floor price for domestic coal in a move to halt the aggressive and competitive price cuts they have been making since early this month. The decision for a floor price was made after oversupply and weaker power demand lowered coal prices more rapidly than expected.

Disruptions hit Chinese lithium producers into 2Q

Slowing electric vehicle (EV) demand in China and disruption during the Covid-19 pandemic will continue to hit the major Chinese lithium producers, including Tianqi Lithium and Ganfeng Lithium, into the second quarter.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners