The Jones Act is a lose-lose for Puerto Rico and US LNG
Yes, its a problem. Yes, it would be better to revoke the Jones Act altogether. Yes, it would make it easier to be able to use US LNG straight. No, it’s not a deadly “Black Mamba” style problem. US LNG at the USGC sells at market prices. There is plenty of LNG to go around and traders will always find ways to get LNG to Puerto Rico if it needs it. It’s maybe going to be a sliver more expensive than if it came straight from the US but in the grand scheme of thing that does not matter. One thing is safe to say, as long as Puerto Rico is willing to pay for what it consumes, it will get LNG at very competitive prices. Jones Act o not.
In September 2017, Hurricane Maria devastated Puerto Rico’s electrical power system. Today, Puerto Rico continues to struggle to rebuild its power grid, and the US Department of Energy has suggested that the island territory utilize more liquid natural gas (LNG) to support its energy plan.
