US LNG Export Market Ready to Take Off
The U.S. Congressman John Garamendi (D-CA-03), Ranking Member of the House Transportation and Infrastructure’s Coast Guard and Maritime Transportation Subcommittee, introduced H.R. 5270, the Growing American Shipping Act, to strengthen the U.S. maritime industry.
The Subcommittee’s Chairman, Congressman Duncan Hunter (R-CA-50), joined the legislation as an original cosponsor.
Existing law, written before the natural gas boom when it was thought America would be a liquefied natural gas (LNG) importer, authorizes the Secretary of Transportation to develop and implement a program to promote the transportation of imported LNG on U.S.-flag vessels.
Under the Deepwater Ports Act, the Secretary is also required to give top priority to the processing of licenses for LNG import facilities that will utilize U.S.-flag vessels.
This bill would modernize these laws, ensuring that the commitment to U.S. maritime is maintained as export opportunities are considered.
The bill would:
- Authorize the Secretary of Transportation to develop and implement a program to promote the export of LNG on U.S.-flag vessels, and
- Require the Secretary to give priority processing of export applications for deepwater port terminals that would utilize U.S.-flag vessels.
Ranking Member Garamendi said: “In order for businesses to grow, they must identify new opportunities and seize them. The export market for LNG, a strategic national asset, is ready to take off.
At the same time, our nation’s maritime industry has been declining for years. Our nation must take the bull by the horns. When it is deemed appropriate to export LNG, it should be on American-flagged vessels.”
Press Release; August 1, 2014; Image: Trunkline