President Donald Trump is considering waiving the Jones Act for transport of natural gas from U.S. ports to Puerto Rico and the Northeast, according to Bloomberg, citing people familiar with the deliberations.
An official statement has not been released. The issue was debated during an Oval Office meeting April 22 with oil industry leaders.
The Jones Act is a 1920 law requiring vessels moving cargo between U.S. ports be U.S.-built, -owned and -crewed. The law was designed to protect the domestic shipping industry and the country’s maritime.
Oil industry leaders argue the Jones Act restrictions undermine Trump’s American “energy dominance” agenda, by encouraging imports of foreign oil and gas despite abundant supplies inside the United States. Russian liquefied natural gas was delivered to Massachusetts in 2018 to help supply consumers in the Northeast. And inland oil refiners argue requirements to use U.S.-flagged vessels boost the costs of obtaining raw crude, effectively subsidizing foreign competitors.
Puerto Rico is seeking a 10-year waiver to allow liquefied natural gas to be delivered to the island on foreign-flagged vessels.
Trump has waived the requirements on a limited basis, granting Puerto Rico a temporary reprieve in 2017, after Hurricane Maria ravaged the island. Trump also briefly lifted Jones Act requirements to ensure gasoline, diesel and jet fuel could be moved among U.S. states more quickly after the storm.