The ceremony was modest, and there’s still a lot of work to be done. But, the U.S. Maritime Administration’s recent announcement concerning one company’s commitment to American-flag LNG ships—with U.S. crews— ranks among the more significant news to surface in our industry all year.In case you missed it, Woodside Natural Gas has pledged to utilize U.S.-flag vessels and American crews and officers in the company’s proposed “OceanWay” LNG import regasification project off the coast of Southern California. Woodside is the first business to make such a commitment as MarAd continues weighing applications for LNG terminals and LNG transport at various domestic ports.
The agency is authorized to favor applicants who employ U.S. mariners and whose ships sail under the Stars and Stripes. Without question, that’s what Congress had in mind last year when it amended the Deepwater Port Act to help ensure domestic safety, security and environmental protection.
The logic behind that position is hard to dispute. Natural gas already accounts for about one-fourth of all energy consumed in the United States. And, according to government projections, demand for natural gas will grow by roughly 40 percent by the year 2025. That’s a potential seven-fold increase in LNG imports.
Here’s the first hitch: Natural gas production in the continental United States has peaked. Increasing the use of liquefied gas means transporting it from both Alaska and overseas to the Lower 48. However, most existing LNG import facilities in the U.S. were built during the 1960s and 1970s. And although the industry’s safety record has been strong, the volatile nature of LNG has created a sense of public unease.
That’s where we come in. American mariners can and should play a key role not only in advancing public acceptance of LNG terminals, but also in the safe, secure transport of the cargo itself. During the past 10 months or so, members of Congress as well as state legislators have declared as much, citing the reliability of the American seafarer and particularly calling attention to the vetting process which civilian mariners must endure simply to acquire a merchant mariner document. The SIU and several other unions took it a step further this summer when we signed an agreement establishing appropriate training standards for U.S. seafarers aboard LNG vessels.
On the flip side, it’s not exactly biased to point out that training and oversight in many foreign-flag registries are virtually nonexistent. It’s also a matter of public record that stowaways accompanied Algerian LNG tankers to Everett, Massachusetts earlier this decade. In fact, since September 11, 2001, more than one stowaway incident has been attributed to these vessels, and almost without exception the people caught are from countries known to harbor terrorists and fugitives. Previously, one of the Al Qaeda millennium-bomb plotters is reported to have reached our shores as a stowaway aboard a foreign-flag LNG tanker before departing through Boston.
As our government issues licenses for new LNG terminals and with the solidly projected increase in importing such cargo, it’s not only good policy but also good common sense to recognize that having American LNG vessels and crews will help to minimize an obvious threat from those who wish to harm our nation.
In part, that’s why I believe that MarAd without exception should push for 100 percent U.S. crewing and the use of the American flag aboard the ships in question. We already know that we can’t take anything for granted when it comes to threats to our population, facilities, environment, and energy security. The use of U.S. vessels and mariners in the LNG trade will go a long way toward protecting all of those things, and at a relatively small cost.
Our nation can’t afford to approach the growing LNG trade any other way.
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