Latest news with #L.N.G.
New York Times
29-04-2025
- Business
- New York Times
U.S. Gas Industry Pushes Back on Trump Shipbuilding Rules
Another rift has opened between the U.S. oil and gas industry and President Trump, this time over new rules designed to encourage domestic shipbuilding and undermine China's maritime power. This month, the Trump administration issued rules that require at least 1 percent of the natural gas shipped overseas to be carried on U.S.-built tankers in 2029. The United States is the top global exporter of liquefied natural gas — gas that has been chilled until it becomes a liquid so that it can be transported in large quantities. But it does not build any of the specialized ships that are used to send that fuel abroad. In a letter to the administration last week, the American Petroleum Institute, the U.S. oil and gas industry's main trade association, said the industry could not comply with that rule and urged officials to reconsider it. The requirement 'risks counteracting the significant progress the Trump administration has made toward reducing uncertainty and unleashing U.S. L.N.G.,' the trade group said in the letter, which was addressed to Chris Wright, the energy secretary, and Doug Burgum, the interior secretary. The maritime rules are the latest source of tension between oil and gas executives — many of whom contributed to Mr. Trump's campaign — and the administration. The industry is aligned with Mr. Trump on an array of key priorities, including exporting more L.N.G. But when it comes to trade, oil and gas companies generally favor more open arrangements, in contrast to Mr. Trump's protectionist agenda. His policies have also weakened economic confidence, causing oil prices to fall. Many companies that produce natural gas are also in the oil business. Oil now sells for about $62 a barrel in the United States, compared with $78 just before Mr. Trump took office. Natural gas prices have also fallen, but remain well above what they were a year ago. Sean Duffy, the transportation secretary, suggested on Monday that there was room to further negotiate the shipping rules. 'We should hear what oil and gas has as their concerns, listen to them, but find a pathway forward where we can build ships in America to send great American energy around the world,' Mr. Duffy said during a visit to the Hanwha Philly Shipyard in Philadelphia when asked about the industry's concerns. Hanwha Systems, a South Korean defense technology company, and Hanwha Ocean, a South Korean shipbuilder, bought the Philadelphia shipyard last year and plan to modernize it. Hanwha Ocean has delivered 200 L.N.G. carriers from its shipyards in South Korea. Such vessels are primarily built in that country, Japan and China. J. Elizabeth Peace, an Interior Department spokeswoman, declined to comment on the trade group's letter, which was reported earlier by The Financial Times. The American Petroleum Institute praised other actions by the Trump administration, including those aimed at enabling more L.N.G. to be exported. 'On balance, we have made significant progress toward ensuring that we have long-term American energy dominance going forward,' Amanda Eversole, the group's chief advocacy officer, said on Monday. In addition to requiring the use of U.S.-built L.N.G. ships, the new rules impose fees on Chinese-owned and Chinese-built vessels. The rules originated from a petition requesting a federal investigation into Chinese shipbuilding filed during the Biden administration by labor unions. Shortly before Mr. Trump took office, the Biden administration said its investigation had found that China had used unfair trade practices like subsidies to become dominant in shipbuilding. The Office of the United States Trade Representative, the agency behind the new rules, softened an earlier proposal after pushback from many industries and trade groups, including the American Petroleum Institute. But the energy group said the latest version of the rules — which require that 1 percent of L.N.G. exports be carried on U.S.-built vessels in 2029, rising to 15 percent in 2047 — was still too demanding. The industry association estimated that five U.S.-built L.N.G. tankers would be needed in 2029 and said building them was 'not feasible,' citing a lack of shipyard capacity and skilled workers, among other concerns. But the rules appear to include a way for companies to delay the use of U.S.-built L.N.G. transporters for three years if they have ordered and taken delivery of a U.S.-built vessel in that time.
New York Times
18-04-2025
- Business
- New York Times
U.S. Gas Exports to China Stopped After Beijing Imposed Tariffs
China has stopped buying liquefied natural gas from the United States after imposing a 15 percent tariff on these shipments on Feb. 10, ship tracking data shows, in the latest sign that Beijing continues to decouple from the U.S. economy. China's imports of L.N.G. from the United States had already slumped to low levels from November through January, data from China's customs agency shows. China instead expanded its purchases from Russia, which supplied China with four times as much L.N.G. last year as the United States did. Only two cargo ships of L.N.G. from the United States were headed to China when Beijing imposed tariffs on American fossil fuels in retaliation for President Trump's initial round of 10 percent tariffs on Chinese goods. One ship reached China before the tariffs took effect and unloaded its cargo while the other went to Bangladesh to avoid the tariff, according to Kpler, a Belgian energy data company. Europe's boycott of natural gas from Russia following its invasion of Ukraine in 2022 has meant that Russian gas sells for very little, while European companies have paid considerably more for gas from elsewhere, including the United States. So Chinese electric utilities have been able to buy a lot of gas at low cost from Russia instead of the United States. Chinese energy firms have been big buyers of L.N.G. in the United States, but were bringing fairly little of that fuel to China even before the tariff took effect. Instead, Chinese companies have been sending their purchases from American ports to sell to Europe. Want all of The Times? Subscribe.
New York Times
27-02-2025
- Business
- New York Times
Trump's Tariff Threats Revive Interest in $44 Billion Alaska Gas Project
New pipeline could shorten L.N.G. trips Proposed pipeline Alaska Nikiski From new export facilities in Alaska, liquified natural gas could reach Japan in about a week. JAPAN U.S. Tokyo It takes about three weeks from states along the Gulf Coast, or about 30 days depending on Panama Canal congestion. Houston Pacific Ocean Proposed pipeline Alaska Nikiski JAPAN U.S. Houston Pacific Ocean Tokyo From new export facilities in Alaska, liquified natural gas could reach Japan in about a week. It takes about three weeks from states along the Gulf Coast, or about 30 days depending on Panama Canal congestion. Note: The Shipping routes are approximate. Sources: Alaska LNG; Searoutes By Weiyi Cai The geography behind a plan to ship natural gas from the North Slope of Alaska to Asia makes good sense. Alaska has vast stores of gas and is just a little over a week at sea from Asia, which has some of the world's biggest importers of liquefied natural gas. But those countries have long been wary of the enormous cost of building the infrastructure to make it happen. That has contributed to a decades-long standstill. Now, Asian buyers are giving the Alaska natural gas project a second look. Their pivot was driven not by a change in the underlying economics, but by an abrupt political shift in Washington, where President Trump is pressuring countries to buy more American energy and appears bent on tapping Alaskan reserves. Under threat of new tariffs, officials and executives in Japan, South Korea and Taiwan are considering ways to participate in the plan called Alaska L.N.G. The $44 billion project involves constructing an 800-mile pipeline from fields north of the Arctic Circle to southern Alaska. From there, the gas would be cooled to liquid form and shipped to Asia. In Japan, a state-owned bank and a government-backed energy group have been exploring whether to provide financing and investment for Alaska L.N.G., according to three people familiar with the matter, who spoke on the condition of anonymity to discuss plans that are in their early stages. Want all of The Times? Subscribe.
