US Regulatory Risks Impact Chinese LNG Carrier Orders

carriers frequently calling US terminals. Additionally, from April 2028, US law mandates a minimum percentage of US LNG exports be transported on US-flagged and operated vessels, rising to 15% by 2047. This regulatory environment introduces long-term risks for Chinese-built LNG carriers engaged in US trades. Korean yards like Hanwha Ocean are responding by pursuing US LNG carrier construction under the MASGA program, becoming the preferred choice for Western LNG owners seeking to avoid regulatory exposure. Meanwhile, Chinese yards focus on non-US trades, aiming to close technology gaps while maintaining price advantages. Shipowners must weigh initial build cost against total ownership cost amid evolving geopolitical and regulatory factors.