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SCA Weekly Report | June 26-30, 2023

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001

www.shipbuildersusa.org

 

 

SCA Weekly Report | June 26-30, 2023

 

 

ANNOUNCEMENTS

 

*Please note that there will not be a SCA Weekly Report next Friday, July 7, 2023*

 

 

Providing Input on OSHA Leading Indicators Research

 

OSHA is creating a new Leading Indicators Resource for employers. This resource will cater particularly to small- and medium-sized employers, equipping them with the knowledge and tools necessary to integrate leading indicators into their safety and health program.

 

Please consider reading OSHA’s list of questions: Questions on the Use and Development of Leading Indicators on their Leading Indicators Research website and providing comments at Regulations.gov, docket number OSHA-2023-0006, by July 17, 2023. 

 

For additional leading indicators information, please visit the links listed below:

 

 

Proposed EDA transfer: WMEC to Sri Lanka

The Navy is proposing the transfer of one USCG 210’ Reliance Class Medium Endurance Cutter to Sri Lanka under the Excess Defense Articles (EDA) program. If you have any questions or concerns, please respond to Lee Ann Carpenter by July 10, 2023. A non-response will be considered as agreement to the transfer.

 

Lee Ann Carpenter

Bureau of Industry & Security

US Department of Commerce

202-482-2583

LeeAnn.Carpenter@bis.doc.gov

 

 

Save the Dates: Upcoming SCA Meetings

 

2023 SCA Fall General Membership Meeting: October 11-12, 2023 | Portland, Maine

2024 SCA Winter General Membership Meeting: February 7-8, 2024 | Coral Gables, Florida

 

NAVY NEWS

 

Navy Finalizes Ship Repair Agreement with Indian Shipyard

As part of Indian Prime Minister Narendra Modi’s visit to the United States, the White House announced a series of defense and commercial deals designed to improve military and economic ties between the two nations. 

 

On Monday, the White House announced that the Navy has concluded a Master Ship Repair Agreement (MSRA) with Larsen & Toubro Shipyard in Kattupalli, India. The MSRA follows an initial agreement between U.S. Department of Defense and the Indian government last year to allow for the repair and maintenance of U.S. Navy ships in India as one of the ways to promote and enhance diplomatic relations between the two countries.

 

The White House said the Navy is finalizing similar agreements with Mazagon Dock Limited (Mumbai) and Goa Shipyard (Goa).

 

OFFSHORE WIND NEWS

 

New Jersey Lawmakers Eye Tax Break for Offshore Wind Developer

New Jersey lawmakers are considering letting Danish offshore wind developer, Orsted, keep tax credits that it otherwise would have to return to ratepayers.

 

A state Senate committee approved a bill Tuesday that would allow Orsted to keep federal tax credits to help counter what they termed lingering economic effects from the COVID-19 pandemic and elevated inflation. Amendments to the bill require Orsted to post a $200 million guarantee with the state, and prepare a report on the financial viability, possible environmental impacts and likelihood of finishing the project on time.

 

The federal 2022 Inflation Reduction Act is “designed to further spur investment in the American clean energy economy in the face of continuing macroeconomic challenges,” according to the bill, which was sponsored by Sen. Bob Smith, a Democrat from Middlesex County.

 

But the state’s Ratepayer Advocate warned against passing the bill in its original form. “While we support offshore wind, we have significant concerns about this bill, its impact on ratepayers, especially the costs and no protections for ratepayers, and the lack of accountability by the beneficiary of this bill,” Robyn Roberts, a spokesperson for the New Jersey Division of Rate Counsel, wrote to lawmakers. READ MORE.

 

IN THE NEWS

 

MARAD Announces NSMV-1 Ship Sponsor and Honorary Matron of Honor

The Maritime Administration (MARAD) has announced Captain Elizabeth Christman as the sponsor of the first state-class National Security Multi-Mission Vessel (NSMV) the EMPIRE STATE, which will be delivered this summer to the State University of New York (SUNY) Maritime College as the university’s new cadet training vessel. MARAD also announced Mrs. Kimberly Alfultis as the Honorary Matron of Honor for the EMPIRE STATE. The spouse of Rear Admiral Michael Alfultis, President of SUNY Maritime College.

 

The EMPIRE STATE is the first of five NSMV’s MARAD is building to replace older training vessels at the nation’s state maritime academies. Each NSMV will feature state-of-the-art instructional spaces, a full training bridge, and accommodations for up to 600 cadets. The vessels can also function as humanitarian and disaster support vessels as needed. 

 

In 2019, MARAD selected TOTE Services to be the vessel construction manager (VCM) for the NSMV program to ensure the use of best practices in commercial ship construction. As construction manager, TOTE awarded Philly Shipyard the contract to construct all five of the vessels. Deliveries are scheduled to take place through 2026, starting this summer.

 

Austal USA Lays Keel for Second EPF Flight II

Austal USA has celebrated the official start of construction of the future USNS Point Loma (EPF 15) with a keel laying ceremony at its Mobile, AL shipyard. The future USNS Point Loma is the second EPF Flight II ship built by Austal USA in Mobile. EPF Flight II provides a Role 2E (enhanced) medical capability which includes, among other capabilities, basic secondary health care built around primary surgery; intensive care unit; ward beds; and limited X-ray, laboratory and dental support. Enhanced capabilities to support V-22 flight operations and launch and recover 11 meter Rigid Hull Inflatable Boats complement the ship’s medical facilities.

 

US LNG Project Approvals on Track for Record New Volumes

U.S. liquefied natural gas (LNG) developers are on track to approve three export projects capable of processing 5.1 billion cubic feet per day (bcfd) of gas in the first half of the year, a record volume for new LNG projects in any year.

 

The U.S. became the world’s largest LNG producer by installed capacity in 2022 driven by the boom in LNG plant construction and a decade of surging shale gas discoveries. U.S. LNG exports are poised to reach 12.1 bcfd this year and 12.7 bcfd next year.

 

The latest approvals are chipping away at a backlog of projects pursuing financial support and customers willing to sign long-term contracts. Analysts say demand for the fuel will keep the flow of approvals coming this year. “We expect global LNG demand to grow from 399 million tons in 2022 to 627 million tons by 2035, more than a 50% increase,” said Michael Stoppard, global gas strategy lead at data provider S&P Global Commodity Insights.

 

 

 

If you have any questions, please do not hesitate to contact the SCA staff.