The Trump administration wisely scrapped penalties for US liquefied natural gas companies that were set to take effect next week, under a sweeping policy aimed at curbing China’s maritime dominance.
The provision, which is effective immediately, will avoid potential short-term disruptions to the LNG sector while promoting investments in U.S. shipbuilding capacity and production of LNG vessels.
Why it matters: American LNG companies warned that existing shipbuilding capacity in the US is not equipped to churn out specialized LNG tankers, which are mainly built in South Korea and Japan.
