LNG

Jan 29 (LNGJ) - New Fortress Energy Inc., the New York-based developer of liquefied natural gas import and export projects, said that US Customs and Border Protection had issued a ruling confirming that the transportation of LNG produced at the company’s FLNG facility located offshore Altamira in Mexican waters by non-US qualified vessels would not violate the Jones Act. The Jones Act is legislation passed back in 1920 that requires goods moved between US ports to be carried by US-flagged ships.

   As a result of this ruling, NFE said it would now be able to sell and deliver LNG produced at its FLNG Altamira facility to US locations, including Puerto Rico, described by the company as a key downstream market. “We are extremely pleased to receive this ruling for our FLNG facility since it not only supports one of the company’s largest projects but also supports the people of Puerto Rico,” said Wes Edens, Chairman and Chief Executive of NFE. The US Government last issued a waiver of the Jones Act shipping rules to help the US territory of Puerto Rico attract LNG shipments amid a tight market and high prices after a 2022 hurricane.

The US Government has issued a waiver of Jones Act shipping rules to help the US territory of Puerto Rico attract LNG shipments amid a tight market and high prices after the recent hurricane damage affected power supplies and energy stocks.

Crowley Maritime Corp. and subsidiary Jensen Maritime, the company’s Seattle-based naval architecture and marine engineering firm, have been honored with awards for the LNG-powered ships engaged in the US-Puerto Rico trade route.

Crowley Maritime Corp., one of the US shipping lines pioneering vessels with LNG fuel capability, marked its commitment to the Florida-Puerto Rico trade route with a ceremony at San Juan port in the US Caribbean territory.

Crowley said it had christened the US-flag combination container-roll on-roll off ship “Taino” in San Juan, where the company’s investments have ushered in a new era of world-class supply chain services.

Clara Crowley, daughter of Chairman and Chief Executive Tom Crowley and board member Christine Crowley, served as the ship’s sponsor and broke the ceremonial bottle of champagne on the bow of “Taino” at the company’s Isla Grande Terminal in the presence of several hundred employees, customers and officials.

It was the first time a container ship had been christened in San Juan in recent memory.

“We are thrilled to christen this magnificent new ship here with our employees, customers and people of Puerto Rico, whom she will serve for many years to come,” said CEO Tom Crowley.

“The ‘Taino’ vessel is a source of pride for us all and in particular the men and women who built and or crew her, many of whom are Puerto Rican,” added Crowley.

The vessel is among the first US-flagged vessels to have LNG capability, like its sister “El Coqui”, which entered service in 2018. Both have dual-fuel engines to operate with LNG and conventional fuel.

Both ships were constructed at the VT Halter Marine’s shipyard in Pascagoula, Mississippi.

Crowley has also made significant investments in terminals and related infrastructure on the mainland and in Puerto Rico.

At Isla Grande, the company added a new, 900-foot pier and three ship-to-shore gantry cranes, the first newly constructed cranes for San Juan Harbor in more than 50 years.

The company also implemented a new terminal operating system and added container staging areas and handling equipment for both refrigerated and dry cargo.

“This major investment, which is resulting in jobs, a positive economic impact, a cleaner environment and world-class supply chain services for Puerto Rico shippers, would not have been possible without the Jones Act,” said Crowley.

The Jones Act is a federal law that regulates maritime commerce in the United States.

It requires goods shipped between US ports to be transported on ships that are built, owned and operated by United States citizens or permanent residents.

“Also known as the Merchant Marine Act of 1920, the law is vitally important to maintaining a strong US maritime capability and national defense,” said Crowley.

“While the act ensures that we have a robust shipbuilding capability and skilled merchant mariners in the US essential to our national defense, it has also created a commercial shipping market between the mainland and Puerto Rico that is highly competitive, customized and dedicated,” said the CEO.

“We should be strengthening this critically important maritime law, not tearing it down as some special interest groups espousing highly inaccurate and misleading information would like to do,” he stated.

Domestic carriers get no direct subsidies, but their routes between US ports are protected from foreign competition.

Many countries have so-called "cabotage” laws restricting who may provide transport services within their borders, and the laws don't just apply to ships, they may also cover airlines, railroads and trucking.

About 90 percent of US-flagged tankers and 36 percent of US-flagged container ships are used on routes protected by the Jones Act.

If the Act were repealed, these vessels would either cease operation or be registered elsewhere. The US Navy would also have to build and greatly expand its sealift assets.

Crowley Maritime Corp. has taken delivery of the first of two container and roll-on-roll-off ships powered by liquefied natural gas from US shipbuilder VT Halter Marine of Pascagoula in Mississippi.

Harvey Gulf International Marine has taken delivery of its fourth LNG-powered offshore supply vessel built at Mississippi’s Gulf Coast Shipyard in Gulfport.

Philly Shipyard Inc. has delivered an LNG-ready vessel named the “American Freedom”, the second of four 50,000 deadweight-ton product tankers ordered by a subsidiary of US energy company Kinder Morgan and constructed at the facility in Philadelphia in the state of Pennsylvania.