New Fortress Finds Way Around Jones Act – Ship US LNG via Mexico

You have to admire Wes Edens, CEO of New Fortress Energy. He’s figured out a way to get around the idiotic prohibition on shipping U.S. LNG from one U.S. port to another. The Jones Act, passed more than 100 years ago, aimed to boost American shipbuilding. The Act requires any cargo ship moving from one U.S. port to another to be built in the U.S., owned by a U.S. company, and crewed with U.S. citizens. There are precisely zero large LNG cargo carriers that meet those criteria. Big LNG carriers are built in other counties where it’s cheaper to build them. Edens figured out how to get around the Jones Act using a floating LNG (FLNG) platform just off the coast of Mexico.
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Actions speak so much louder than words on a page, don’t they? Take Pennsylvania Gov. Josh Shapiro. When he was Attorney General, he relentlessly threatened and attacked and harassed the companies in the Marcellus industry (
Last Friday, Joementia announced a one-year “pause” on any approvals for new LNG export plants (currently 17 requests in the pipeline) for at least one year while his people pretend to figure out how to measure global warming as a new consideration for whether or not to approve a project (see
NATIONAL: Cheniere announces uplisting to the New York Stock Exchange; Three reasons why moratorium on LNG projects is Biden’s latest misstep; ExxonMobil just set the climate alarm lobby on fire again; INTERNATIONAL: Impact on commodities, including LNG, due to chaos in the Red Sea.

Here’s one instance when antis may have a legitimate point. In 2018, Equitrans Midstream, the builder of the 303-mile Mountain Valley Pipeline (MVP), proposed to extend MVP (when it’s done) by an extra 75 miles from the current terminus in Pittsylvania County, VA, to Alamance County, NC, to provide natural gas for heating and electric generation. The 75-mile extension is called MVP Southgate. Last year, Equitrans asked the Federal Energy Regulatory Commission (FERC) to extend Southgate’s project timeline an extra three years. FERC agreed in December (see
Score a (very) minor victory for the radicals of a Little Green Group (funded with money from Big Green groups) called Protect PT. Last October, a lawsuit brought by Protect PT against a second injection well planned for Plum Borough (Allegheny County), PA, had oral arguments before the state’s Commonwealth Court (see
Evolution Well Services announced a three-year extension of their current electric fracturing partnership with Encino Energy after achieving operational efficiencies and milestones in 2023. Evolution uses “e-fracking” technology. Traditional fracking uses diesel-fueled engines to produce electricity to power pressure pumps for hydraulic fracturing operations. E-fracking uses natural gas from the well pad (or CNG or LNG) to power turbines to create electricity. E-fracking uses a different type of “engine” and different fuel. E-fracking fleets are roughly half the size of traditional diesel fleets — and a whole lot quieter.
In early 2013, the Pittsburgh International Airport and Allegheny County, PA, signed a deal with CONSOL Energy (now CNX Resources) to lease 9,000 acres surrounding the airport for natural gas drilling (see
Last November, CNX Resources CEO Nick Deiuliis signed a voluntary deal with Pennsylvania Gov. Josh Shapiro to expand drilling setbacks and several other regulatory steps not mandated for shale drillers under PA law (see
Both conventional and unconventional (shale) drillers in Pennsylvania were supposed to submit a new annual report to the state Dept. of Environmental Protection (DEP) on December 10 detailing volatile organic compound (VOC) and methane emissions from their operations over the past one-year period. Shortly before that deadline, the DEP suspended the due date. This past weekend, the DEP published a new due date. Drillers must submit the annual report (for 2023) by June 1, 2024.
In April 2022, MDN reported that the top brass at Kinder Morgan, the owner and operator of the Elba Island LNG export facility (also known as Southern LNG), was considering an expansion of its modestly-sized facility (see
Last Friday, Joementia announced he is putting “a temporary pause on pending decisions of Liquefied Natural Gas exports.” The reason? The so-called “climate crisis” is “the existential threat of our time.” It’s all rubbish. The real reason is that he bowed to radical leftists in his own party. He needs them if he has a prayer of a chance of winning reelection in November (God forbid). The action supposedly affects 17 projects in the pipeline that have requested approval from the Dept. of Energy to export LNG to countries without free-trade agreements. But now, antis say Biden’s pause can potentially help them with their existing lawsuits against facilities already approved by the DOE.