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U.S.-Built LNG Vessels Unlikely Despite Bill

A provision in the 2006 Coast Guard authorization bill would favor offshore LNG terminals that anticipate receiving U.S.-flagged vessels; the bill also requires Coast Guard to provide vessel flag information to FERC for use in its terminal approval proce
June 28, 2006

A provision in the 2006 Coast Guard authorization bill would favor offshore LNG terminals that anticipate receiving U.S.-flagged vessels; the bill also requires Coast Guard to provide vessel flag information to FERC for use in its terminal approval process. According to yesterday’s Platts LNG Daily, the provision is not expected to result in the development of U.S.-flagged LNG vessels: “The U.S. shipping industry as it exists today doesn’t have the capacity to build an LNG tanker,” said Bill Cooper of CLNG. The bill has been approved by the House and Senate. [Subscription required]

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