U.S.-Flag LNG Ships Gain Support as Export Costs Seen Rising
bloomberg.com
...Proposals from Representative John Garamendi, a Democrat from California, and the Department of Transportation’s Maritime Administration would require exports of liquefied natural gas to use U.S.-made and -crewed ships. The shipping industry expects the moves to gather bipartisan support, said Clay Maitland, chairman of the Merchant Marine Policy Coalition, an industry group. While the changes would make LNG exports more expensive than using foreign tankers because no such U.S.-flagged vessels currently exist, supporters of the effort say that the U.S. merchant fleet is vital to national security. The proposals are gaining attention amid calls to ship gas to Europe to offset possible reductions in supply from Russia...
... Garamendi, 69, who sponsored the proposal as an amendment to the Coast Guard Reauthorization Bill, said in a phone interview. “I’m not here to make the gas industry happy -- I’m interested in building the American economy and the manufacturing sector, of which the shipbuilding industry, for strategic defense purposes, has to remain strong,” he said.
In effect the moves would put exports of the fuel -- and later, possibly crude oil -- under the same rules that restrict domestic cargoes to U.S. ships...
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UPDATE 1-U.S. senator launches bill to go slow on LNG exports despite Ukraine
reuters.com
... U.S. Senator Edward Markey introduced a bill on Thursday to make the Obama administration's approval of liquefied natural gas (LNG) exports more complicated, saying expedited permits will not help Ukraine and Europe manage Russia's control of fuel supply...
...An energy policy analyst said proponents of fast-tracking LNG exports need to be careful lest they unintentionally trigger a new rule making by the administration that could slow the approval process."Changing the process midstream may provide the administration an unintended opportunity to re-evaluate its current strategy," Whitney Stanco of Guggenheim Securities said in a note to clients... |
