The Trump administration’s batch to revive the construction of American ships can unintentionally hinder the prosperous LNG exports (LNG) in the country, according to a report issued by OilPrice.com. The new states proposed by the US Trade Representative (USTR) require an increasing percentage of liquefied natural gas exports to ships created in the United States, which begins with 1 % by 2029 and 15 % by 2047.
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Data emerges from the IndexBox challenge: The United States was exported of LNG shipments 1,396 in 2023, but the global fleet includes only 792 LNG carriers, with only one container in the United States-was built in France-at the present time. Industry groups argue that meeting USTR requirements will be almost impossible, given the absence of a ship building capacity, specialized chains and supply chains.
The LNG Center (CLNG) and the American Petroleum Institute (API) warned that the rules will be punished for exporters of LNG without confronting the hegemony of shipbuilding in China effectively. By the end of the contract, there will be a need for up to six liquefied natural gas companies to comply with the authorization by 1 %-a semi-worthy task, as the last LNG airline in the United States has been completed in 1980.
Experts suggest that without flexibility in identifying the “built” ships or perpetuation, the policy can suffocate the exports of liquefied natural gas with the growth of global demand. “We are risking to fill in our LNG exports and open the market for the competition,” said Louis Sola, former Federal Marine Committee Commissioner.
Source: Indexbox Market Intelligence
