Following a major trade policy recommendation aimed at reducing China’s position in the Global ship construction market, South Korean shipbuilder Hanwha Ocean (Hanwha Philly Shipyard in the USA) plans to construct the US’s first indigenous liquefied natural gas tanker
Hanwha Ocean is aggressively expanding its U.S. footprint in response to a proposal unveiled by the Office of the U.S. Trade Representative. The proposal recommended tariffs on Chinese-built vessels entering American ports after a six-month phase-in period. The proposal also recommended mandating that LNG carriers transporting U.S.-sourced fuel must be constructed and flagged domestically.
The only problem is US currently lacks the necessary infrastructure required to construct such complex vessels
While it will increase the global LNG fleet sailing under the U.S. flag from the current approx 1%, American LNG exporters argue that enforcing a U.S.-build mandate would drive up costs and not only jeopardize long-term export contracts but also affect the USA’s leadership in the LNG market.