UPDATE: PHMSA Suspension

Going, Going, Gone

Some of you may recall the long battle of transportation of Liquified Natural Gas (LNG) by rail. It was originally thought to have been settled by the Final Rule published to the federal register in July 2020. However, after the election, a pair of Executive Orders (EO) appeared to threaten the future of LNG by rail. Which brings us to the present.

On September 1, 2023, the Department of Transportation (DOT), Pipeline and Hazardous Materials Safety Administration (PHMSA) in accordance with the Federal Railroad Administration (FRA) published its Final Rule amending the Hazardous Materials Regulations (HMR) suspending the transportation of LNG by rail until June 30, 2025 or until a new companion rule can be established “evaluating potential modification requirements governing rail tank car transportation of LNG.”

It should be noted this final rule takes effect on October 31, 2023. However, shippers may continue to ship LNG under certain special conditions (Special Permit and FRA approval in ISO tank secured to a rail car). While this isn’t good for LNG by rail, it is not the end. It is likely we will more proposed rules and comment periods in the future.

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