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Cato Podcast

The Jones Act, Liquified Natural Gas, and Russia

Cato Podcast

Cato Institute

Immigration, News, News Commentary, Peace, 424708, Markets, Government, Libertarian, Policy, Politics, Cato, Defense

4.5979 Ratings

🗓️ 1 November 2019

⏱️ 7 minutes

🧾️ Download transcript

Summary

When Puerto Rico wants to buy liquified natural gas, it's pointless to buy from America. Thank the Jones Act. Colin Grabow comments.

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Transcript

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0:00.0

This is the Kader Daily Podcast for Friday, November 1st, 2019. I'm Caleb Brown.

0:09.0

Why is a longstanding federal law strongly encouraging US territories to import

0:14.3

their liquid natural gas not from Texas but from Russia. It's called the Jones

0:19.2

Act. Cato's Colin Greybao comments. So why is Puerto Rico importing liquid natural gas

0:27.2

from Russia, a geopolitical rival of the United States.

0:32.8

According to new reports, a Spanish-flagged ship called the Catalunya spirit

0:39.7

will arrive in Puerto Rico later this month, possibly as soon as by the time this podcast airs.

0:45.9

And it will discharge its cargo at liquefied natural gas, which will be used by Puerto Rico

0:50.8

for purposes of power generation.

0:52.8

Puerto Rico uses natural gas for about one third of its electricity needs.

0:57.6

And this gas originated in Russia.

1:00.7

The gas was transported from Russia to Belgium and I believe was picked up in Belgium and now it's being transported to Puerto Rico.

1:08.0

And what's interesting about this is this isn't the first time something like this has happened.

1:12.0

Last winter, LNG was imported into Boston that also

1:16.9

originated in Russia and all of this is taking place at the same time that the United States is one of the world's leading exporters of LNG.

1:24.8

So the United States exports liquefied natural gas all over the world.

1:29.3

It sends it to Jordan, Japan, Spain, Argentina, Brazil, all over the place. One place it does not send

1:37.1

LNG over the water to, by ship or other parts of the United States and that's because it's

1:42.7

literally impossible to do so. And is that because there are no ships to

1:47.9

carry liquefied natural gas from port to port among US states? There are plenty of ships in the world.

1:54.2

They're capable of transporting liquefied natural gas,

1:56.5

but there are zero ships in existence

...

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