What is the Jones Act?

The Jones Act of 1920 is a protectionist measure that addresses maritime commerce in the United States. The Act mandates that all goods shipped between U.S. ports must be transported by U.S. flagged vessels. Such vessels must be built, owned and operated by U.S. citizens, or permanent residents. As of February 2020, there were no U.S. flagged LNG vessels, which means LNG produced in the United States cannot be transported to LNG import facilities in the country, such as shipping LNG from the U.S. Gulf Coast or Cove Point in Maryland to import facilities in Boston.