The U.S. government plans to impose fees on Chinese ships docking at American ports, despite industry opposition leading to a reduction in the proposed charges. The U.S. liquefied natural gas (LNG) sector warns that these protectionist measures could undermine America's ambition to be the world's largest LNG supplier. Although LNG carriers are currently exempt from these fees, the U.S. Trade Representative's office insists on other new policy requirements.
Starting in three years, a portion of U.S. LNG exports must be transported by American-built, U.S.-flagged, and U.S.-operated vessels. By 2028, these ships should handle 1% of U.S. LNG exports, increasing to 2% by 2031, and 15% by 2047. The LNG industry argues that these measures threaten long-term contract stability and increase costs for global buyers, potentially weakening U.S. supply dominance.
Industry experts highlight the impracticality of these requirements, noting the lack of suitable American ships and the decades needed to build them. Analysts suggest the restrictions have limited immediate impact but foresee significant challenges starting in three years. The U.S. may struggle to develop the necessary shipbuilding capabilities, raising doubts about enforcing penalties on LNG developers if non-compliance arises.
