In CNBC, TRP’s Sola Discusses Impact of Trump Energy Export Deals on Maritime

In an article for CNBC, TRP Partner Louis Sola discussed the maritime industry’s capacity to handle a steep increase in liquefied natural gas (LNG) exports under competing trade policy mandates from the Trump administration.

While the president is hailing foreign energy purchases of U.S. LNG in its trade deal frameworks, a separate rule from the U.S. Trade Representative (USTR) — which institutes fines for companies that do not move domestic LNG on U.S.-built tankers — has raised serious of questions across the shipping industry. As Congress pursues options like the bipartisan SHIPS Act to support construction of U.S.-made ships, Sola astutely stressed the need for a “common sense flexibility or phased-in approach” to avoid bottling up exports and thus yielding to other foreign energy markets.

“The question everyone is asking is simple —  can the U.S. actually build enough LNG carriers fast enough under the SHIPS Act without shooting ourselves in the foot? We’ll need as many as 50 vessels by 2050,” Sola stated. “Korean and Japanese yards already take over two years per ship and are booked solid, and we don’t currently build this class here whatsoever.”

“Without some common-sense flexibility or a phased-in approach, the math just doesn’t add up. We risk bottling up our own LNG exports and opening the market to the competition right when our allies need American energy the most.”