GNL companies say they cannot meet Trump’s rules on Chinese ships

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The Liquefy Natural Gas Industry has warned the Trump administration that it cannot comply with new rules aimed at using American transport vessels by imposing imposts on Chinese built ships docked on American ports.

Warns the rules published by United States commercial representative Jamieson Greer on April 17 could damage $ 34 million annually export industry This is essential on the president’s “energy domain” agenda, according to the pressure letters sent by the American Petroleum Institute to the Administration this week.

New rules are part of United States’ efforts to increase pressure on China on which Washington argues that they are unfair commercial practices, while increasing the domestic manufacturing of ships.

However, they have provoked alarm among North -American exporters, who are concerned that they will dramatically increase the cost of contracting vessels.

The GNL industry has already benefited from a three -year delay in the implementation of the rules in the sector, which depends much on Chinese and foreign Chinese vessels.

The Ustr also allows GNL producers gradually in the use of ships built in the United States for a period of 22 years. North -American authorities could still order the suspension of GNL’s export licenses if the terms of the new rules are not fulfilled.

But the API warns the letters to the U.S. Energy Secretaries and the interior that it is impossible for GNL producers to comply with the rules.

Currently, there are no ships built in the United States capable of sending GNL and no surplus capacity to US shipyards to build GNL carriers at the deadline of 2029, according to people who were reported on the content of the letters.

The API warns that the rules would commit the capacity of North -American producers to dominate the GNL global industry and cement the position of America as a global energy superpower.

This action against the industry could make future U.S. administrations creative and use similar business instruments as a way to suspend export licenses, according to the group.

The industry has also requested that the administration exempt from crude and refined products such as gasoline and liquefied gas from maritime oil, emphasizing that these rates disrupted a carefully balanced supply chain and affect the competitiveness of the industry.

When asked about the letter, API told The Financial Times that he understood the need to curb China’s discriminatory commercial practices and increase North -American Naval construction, but he had concerns about the rules.

“We will continue to work with the Ustr and the Energy Department in support of feasible and durable policies that benefit consumers and advance the dominance of American energy,” said Aaron Padilla, vice-president of the Corporate Policy API, in a statement.

Charlie Riedl, executive director of the Center of LNG, a group in the industry, said that the measures of the risk destabilizing long -term contracts, increasing the costs for world buyers and threatening the position of the United States as the main exporter of GNL.

“That is why we urged the Ustr to completely exempt the LNG and GNL transport carriers of this action,” he said.

The United States surpassed Australia by 2023 to become the largest exporter in the world and last year Sent 11.9 million cubic feet on LNG day, enough to meet the combined gas needs of Germany and France. The industry has ambitious plans to double exports at the end of the decade.

New rules on Chinese property and operation have led to a wave of lobbying by the American industry, including farmers and other exporters, who have warned that it will increase goods costs.

According to the rules, the United States will begin to collect rates for owners and ship operators of China of $ 50 per ton Net from 180 days, increasing by $ 30 per net ton for the following three years. Companies elsewhere in the world operating Chinese ships would be paid a lower amount.

The oil and gas industry, which was a great donor of the Trump election campaign, has so far been a considerable success in gaining concessions from the administration, including oil and gas imports in the United States excluded from the rates.