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Home @NYTimes

U.S. Gas Industry Pushes Back on Trump Shipbuilding Rules

April 29, 2025
in @NYTimes, Business
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New York Times - Business

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The main oil and gas trade group wants the Trump administration to reconsider maritime rules released in April that would require it to use some U.S. ships to transport liquefied natural gas.

Another rift has opened between the U.S. oil and gas industry and President Trump, this time over new rules designed to encourage domestic shipbuilding and undermine China’s maritime power.

This month, the Trump administration issued rules that require at least 1 percent of the natural gas shipped overseas to be carried on U.S.-built tankers in 2029. The United States is the top global exporter of liquefied natural gas — gas that has been chilled until it becomes a liquid so that it can be transported in large quantities. But it does not build any of the specialized ships that are used to send that fuel abroad.

In a letter to the administration last week, the American Petroleum Institute, the U.S. oil and gas industry’s main trade association, said the industry could not comply with that rule and urged officials to reconsider it.

The requirement “risks counteracting the significant progress the Trump administration has made toward reducing uncertainty and unleashing U.S. L.N.G.,” the trade group said in the letter, which was addressed to Chris Wright, the energy secretary, and Doug Burgum, the interior secretary.

The maritime rules are the latest source of tension between oil and gas executives — many of whom contributed to Mr. Trump’s campaign — and the administration. The industry is aligned with Mr. Trump on an array of key priorities, including exporting more L.N.G.

But when it comes to trade, oil and gas companies generally favor more open arrangements, in contrast to Mr. Trump’s protectionist agenda. His policies have also weakened economic confidence, causing oil prices to fall. Many companies that produce natural gas are also in the oil business.

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