New York’s Shift from Natural Gas: A Case for a Jones Act LNG Waiver

New York State’s ongoing transition away from natural gas is emblematic of a broader push toward renewable energy and reduced carbon emissions. While this shift aligns with ambitious climate goals, it also highlights a critical issue for neighboring New England states: the need for reliable, affordable energy during the transition. This challenge underscores the importance of revisiting the Jones Act—a century-old maritime law—to allow domestic liquefied natural gas (LNG) to flow to New England.

The Jones Act, formally known as Section 27 of the Merchant Marine Act of 1920, requires goods transported between U.S. ports to be carried on ships that are U.S.-flagged, U.S.-built, U.S.-owned, and U.S.-crewed. This creates barriers for energy distribution, including LNG.

The United States is the world’s leading exporter of LNG, with tankers regularly transporting the fuel to dozens of countries. Last year, for example, the Cove Point, Maryland LNG terminal exported LNG as far as Japan and India. Yet incredibly—and absurdly—that same LNG can’t be sent up the coast to New England due to a complete lack of U.S.-built and U.S.-flagged LNG tankers.

Instead, the region often relies on costlier foreign LNG imports. Earlier this year, the CEO of ISO New England highlighted the benefits that relief from the Jones Act would provide. Testifying before Congress, he pointed out that LNG was being imported at approximately six times the price that US LNG exports command.

New York’s pivot away from natural gas compounds this issue. As the state phases out natural gas infrastructure and prioritizes electrification and renewable energy, it reduces its role as a transit hub for natural gas pipelines to New England. This leaves New England states, which already face some of the highest energy costs in the nation, even more vulnerable to supply shortages during peak demand periods, such as harsh winters.

A Jones Act waiver for LNG could provide a practical solution. By allowing non-compliant vessels to transport LNG between U.S. ports, New England could access abundant and affordable domestic LNG. This would reduce reliance on foreign imports, enhance energy security, and stabilize prices for consumers. Moreover, domestic LNG is often produced under stricter environmental and labor standards than foreign alternatives, aligning with broader sustainability and ethical goals.

A Jones Act LNG waiver would not only support New England’s energy needs but also strengthen the nation’s energy independence. As policymakers weigh the complexities of energy and environmental policy, pragmatic solutions like this deserve serious consideration.