The Trump Administration’s push to revive U.S. shipbuilding could inadvertently hinder the country’s booming liquefied natural gas (LNG) exports, according to a report by Oilprice.com. New mandates proposed by the U.S. Trade Representative (USTR) would require a growing percentage of LNG exports to be transported on U.S.-flagged and U.S.-built vessels, starting with 1% by 2029 and rising to 15% by 2047.

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Data from the IndexBox platform highlights the challenge: the U.S. exported 1,396 LNG cargoes in 2023, but the global fleet includes only 792 LNG tankers, with just one U.S.-flagged vessel—built in France—currently in operation. Industry groups argue that meeting the USTR’s requirements would be nearly impossible, given the lack of U.S. shipyard capacity, specialized labor, and supply chains.

The Center for Liquefied Natural Gas (CLNG) and the American Petroleum Institute (API) have warned that the rules would penalize U.S. LNG exporters without effectively countering China’s shipbuilding dominance. By the end of the decade, up to six U.S.-built LNG carriers would be needed to comply with the 1% mandate—a near-impossible task, as the last LNG carrier built in the U.S. was completed in 1980.

Experts suggest that without flexibility in defining “U.S.-built” vessels or phased implementation, the policy could stifle LNG exports just as global demand grows. “We risk bottling up our own LNG exports and opening the market to the competition,” said Louis Sola, a former Federal Maritime Commission commissioner.

Source: IndexBox Market Intelligence Platform