US energy sector asks for LNG tankers exclusion from USTR rule
US energy groups are urging the Trump administration to exempt liquefied natural gas (LNG) tankers from a new rule that would require a growing share of exports to be shipped on US-built vessels.
On 17 April, the US Trade Representative (USTR) as part of a broader effort to boost domestic shipbuilding, announced that starting in April 2028, 1% of LNG exports must be transported on US built ships, a figure set to rise to 15% by April 2047 and beyond.
Industry leaders argue the rule puts the US LNG sector at a disadvantage due to the limited number of American-built ships, Reuters reports.
On 23 April, in a letter to Energy Secretary Chris Wright and National Energy Dominance Council Chair Doug Burgum, American Petroleum Institute (API) warned that US shipyards cannot build vessels fast enough to meet the requirement, calling the rule “not feasible” and a threat to American LNG exports.
According to Mike Sommers, CEO, API, the 1% requirement alone would necessitate up to five US-built LNG carriers by the end of the decade.
However, with only two US shipyards capable of building such vessels and each taking up to five years to complete one, meeting the deadline is highly unlikely.
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