Novatek Says Yamal LNG Project Can Ensure Supply After U.S. Sanctions

By Adria Calatayud

Novatek (NVTK.LN) said Monday that its Yamal liquefied natural gas project will be able to ship gas on time after an owner of tankers conducting shipments for the project was hit by U.S. sanctions.

The Russian gas company said its Yamal project in northern Russia has all the necessary capacities to ensure supplies of LNG to customers in accordance with contractual obligations within the agreed timelines.

Teekay LNG Partners L.P. (TGP), which owns four tankers conducting LNG shipments for the Yamal projects, has a joint venture which currently qualifies as a "Blocked Person" under rules of the U.S. Treasury's Office of Foreign Assets Control. This follows last week's move by the Trump administration to blacklist several Chinese firms and their top officials for allegedly shipping Iranian oil in violation of U.S. sanctions.

The issue to resolve this situation is a business-relations matter between Teekay and its Chinese partner and Teekay's specific shipments for the Yamal project aren't related to the sanctions, Novatek said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

September 30, 2019 13:06 ET (17:06 GMT)

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