- The Trump administration is reviewing LNG export rules requiring U.S.-built vessels.
- Industry groups warn the mandate would raise costs and hurt U.S. competitiveness.
- Officials are considering removing the export license revocation clause.
- Adjustments could support U.S. LNG growth despite limited domestic shipbuilding capacity.
The Trump administration is weighing changes to rules that could ease restrictions on U.S. liquefied natural gas (LNG) exporters. The move comes in response to concerns that current policies—requiring the use of American-built vessels—might hinder the industry’s global competitiveness. The potential adjustment, aimed at addressing the limited domestic shipbuilding capacity, was highlighted in a report by Safety4Sea.
The existing policy, introduced by the U.S. Trade Representative in April and scheduled to take effect in mid-October, was designed to strengthen U.S. shipbuilding by mandating LNG exports on American-built vessels. However, producers cautioned that such requirements could significantly raise costs and weaken the appeal of U.S. fuel in international markets.
In June, the USTR invited public comments and examined options to modify the rule, including provisions that allowed the Department of Energy to revoke export licenses if shipping requirements were not met later in the decade. Current discussions within the administration suggest that this revocation clause could be removed, offering relief to LNG companies.
Industry leaders emphasize that U.S. shipyards currently lack the capacity to build the specialized LNG carriers, which are mainly constructed in South Korea and Japan. Adjusting the policy could help secure the steady growth of American LNG exports in global trade without being limited by domestic shipbuilding constraints.
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Source: Safety4Sea
