Feds Seek Comment on LNG Transport Rule Changes

The Pipeline and Hazardous Materials Safety Administration is seeking comment to inform a rulemaking proposal to update decades-old regulations for liquified natural gas facilities, fast-track new LNG infrastructure projects, expand domestic export capacity, and grow the small-scale LNG market.

This is one of several energy sector rulemakings that are expected to reduce regulatory burdens on industry.

“President Trump charged the Department of Transportation with unleashing American energy so we can lower costs and grow the economy,” said U.S. Transportation Secretary Sean P. Duffy. “Within 100 days, we’re doing just that. PHMSA is laying the groundwork to revamp decades-old regulations and slash red tape to increase LNG exports, generate good-paying jobs, and allow the U.S. to safely send more of its natural resources around the world.”

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The Advance Notice of Proposed Rulemaking (ANPRM) for Amendments to Liquefied Natural Gas Facilities regulations is the first in a series of priority PHMSA actions to implement the President’s “Unleashing American Energy” Executive Order.

In addition to this LNG facilities ANPRM, PHMSA announced three other priority areas where the agency will be updating or revising its rules:

Hazardous Liquid and Gas Transmission Pipeline Repair Criteria—PHMSA will issue an ANPRM to modernize pipeline repair requirements to improve safety and efficiency.
Pipeline Class Location Change Requirements—PHMSA will finalize new safety requirements allowing for modern technologies to be used to safely account for population changes near existing natural gas pipelines. These regulations have not been updated in over 50 years.
Modal Safety Advancements—PHMSA will complete a pending rulemaking to revise and streamline hazardous materials requirements for the transportation of petroleum-based fuels and other essential energy products to reduce compliance complexity and eliminate unnecessary burdens on shippers and motor carriers.

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“Increased U.S. energy production is creating heightened demands on pipeline infrastructure and export facilities, making the safety and reliability of our energy transportation network more critical than ever,” said PHMSA Acting Administrator Ben Kochman. “These rulemakings would reduce the burden on those who produce and transport American energy by allowing them to take advantage of advances in technology and engineering best practices and removing out-of-date regulatory requirements. These rules would contribute to lower costs for American consumers and help our allies abroad.” The full text of the LNG facilities ANPRM will be available in the Federal Register on publication. PHMSA has posted an unofficial version of the ANPRM on its website, pending publication in the Federal Register. All other updates will be made available on PHMSA’s website once submitted to the Federal Register.