Legislation Seeks To Revive U.S. Shipbuilding And Shipping for LNG

[Tom Kirkman + 8,860]

At first blush, this sounds like a fairly sensible "local content" rule for construction and shipping of U.S. LNG.

I've dealt with oil & gas in many countries, and am familiar with the various "local content" rules that different countries impose.

Side note, since I live in Malaysia, and the National Oil Company here is Petronas, I got a big chuckle a few years ago when Petronas staff were kicked out of Iraq a few years ago for refusing to comply with Iraq's 90% local content rules.  Amusing because Petronas is an iron-fisted dictator in enforcing its own "local content" licensing rules locally, which revolve squarely around race + religion requirements.

But I digress...

This U.S. "local content" LNG shipping proposal is not huge, only 10% by 2033 and 15% by 2041.  Far more reasonable than "local content" rules by many other countries.

 

Legislation Seeks To Revive U.S. Shipbuilding And Shipping

Rep. John Garamendi (D-Calif.) and Sen. Roger Wicker (R-Mass.) have reintroduced a bill, the Energizing American Shipbuilding Act (H.R.3829), that seeks to revive domestic shipbuilding and maritime industries by requiring that increasing percentages of liquefied natural gas and crude oil exports be transported on U.S.-built, flagged and crewed vessels.

Garamendi's offices said the Shipbuilders Council of America has estimated the bill would result in the construction of more than 40 ships: approximately 28 LNG carriers by 2041 and 12 oil tankers by 2033.  

In remarks on the floor of Congress on Tuesday, Garamendi said, "The steel in the ships, the pumps, the pipes, the electronics, the propellers, the drive shaft, the engines — all of those things — can be made in America if we have a national policy that simply says the export of a strategic national asset, oil and gas, that that be on American-built ships. Not all of it, 10%, 15%, 40 ships over the next 15 years or so when the Energizing American Shipbuilding Act becomes law."  ...

 

... The bill would require that vessels built in the United States transport 15% of total seaborne LNG exports by 2041 and 10% of total seaborne crude oil exports by 2033.

[BenFranklin'sSpectacles + 762]

On 8/7/2019 at 6:02 PM, Tom Kirkman said:

At first blush, this sounds like a fairly sensible "local content" rule for construction and shipping of U.S. LNG.

I've dealt with oil & gas in many countries, and am familiar with the various "local content" rules that different countries impose.

Side note, since I live in Malaysia, and the National Oil Company here is Petronas, I got a big chuckle a few years ago when Petronas staff were kicked out of Iraq a few years ago for refusing to comply with Iraq's 90% local content rules.  Amusing because Petronas is an iron-fisted dictator in enforcing its own "local content" licensing rules locally, which revolve squarely around race + religion requirements.

But I digress...

This U.S. "local content" LNG shipping proposal is not huge, only 10% by 2033 and 15% by 2041.  Far more reasonable than "local content" rules by many other countries.

 

Legislation Seeks To Revive U.S. Shipbuilding And Shipping

Rep. John Garamendi (D-Calif.) and Sen. Roger Wicker (R-Mass.) have reintroduced a bill, the Energizing American Shipbuilding Act (H.R.3829), that seeks to revive domestic shipbuilding and maritime industries by requiring that increasing percentages of liquefied natural gas and crude oil exports be transported on U.S.-built, flagged and crewed vessels.

Garamendi's offices said the Shipbuilders Council of America has estimated the bill would result in the construction of more than 40 ships: approximately 28 LNG carriers by 2041 and 12 oil tankers by 2033.  

In remarks on the floor of Congress on Tuesday, Garamendi said, "The steel in the ships, the pumps, the pipes, the electronics, the propellers, the drive shaft, the engines — all of those things — can be made in America if we have a national policy that simply says the export of a strategic national asset, oil and gas, that that be on American-built ships. Not all of it, 10%, 15%, 40 ships over the next 15 years or so when the Energizing American Shipbuilding Act becomes law."  ...

 

... The bill would require that vessels built in the United States transport 15% of total seaborne LNG exports by 2041 and 10% of total seaborne crude oil exports by 2033.

That's surprisingly reasonable.  15% will have minimal impact on the price of transportation, but it will make a world of difference for US shipbuilding.