• GAO Releases Report on the Implications of Using U.S. LNG Carriers for Exports
  • December 9, 2015
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The U.S. Government Accountability Office (GAO) has released a report analyzing the effects on jobs and the U.S. maritime industry if Congress were to pass legislation requiring U.S. produced LNG to be exported via U.S.-built-and-flagged carriers. The report finds that such a requirement could expand employment for U.S. mariners and shipbuilders if it does not reduce the expected demand for U.S. LNG. The report estimates that between 4,000 and 5,200 mariners would be needed to operate the estimated 100 LNG carriers needed to transport the full capacity of the five U.S. LNG export facilities under construction, but building 100 carriers would likely take over 30 years, with employment in U.S. shipyards increasing somewhat or becoming more stable. U.S.-built carriers would also cost two to three times as much as similar Korean-built ships and would be more expensive to operate, decreasing the competitiveness of U.S. LNG in the world market and possibly reducing the demand for U.S. LNG.