Shares of liquefied natural gas marine transportation company Teekay LNG (TGP) - Get Report are down nearly 10% after the company disclosed that its liquefied natural gas tanked joint venture has been blocked by U.S. sanctions against two units of a Chinese partner.
The Bermuda-based company is partnered with China's COSCO Shipping Tanker, which is one of the companies that is alleged to have carried Iranian oil after sanctions waivers ended in May.
"The Teekay Group has not traded and will not trade with Iran and will not act in contravention of any trading sanctions," the company said in the statement. "The company is working with its joint venture partner to expeditiously resolve this issue and will provide further updates on the situation as and when appropriate."
Teekay shares were down 9.6% to $13.68 Monday afternoon on the news.