US seeks to amend LNG-by-rail rules
The US Transportation Department on November 8 proposed rescinding a rule that allows for the shipment of liquefied natural gas by rail.
The department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) in 2019 under then-president Donald Trump proposed permits for LNG transport by rail. The proposal was the result of an executive order that Trump offered that sought to capitalise on the momentum for LNG production and supply.
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“Transportation of LNG by rail is a potentially viable alternative to pipelines, which are not always able to meet the demand of, or reach, certain areas in the US that are accessible by rail,” the PHMSA said at the time.
LNG transport by rail was only allowed using tanks that have specific authorisation from the Federal Railroad Administration. The new rule permitted transport on so-called DOT-113 rail cars that are used for other flammable cryogenic liquids.
Environmental groups in 2020 sued over the ruling and opponents suggested the former president fast-tracked the measure without implementing new safety regulations.
The PHMSA two years later has proposed a suspension of the rule that authorised the transportation of LNG through DOT-113 rail cars while it evaluates regulatory frameworks.
The PHMSA added that sending LNG by conventional rail car has not occurred.
Critics in 2019 expressed alarm about the potential risks involved with transporting a flammable liquid such as LNG by rail. Transport of fossil fuels by rail was reviewed thoroughly following a deadly derailment of a train carrying crude oil in the town of Lac-Magentic in the Canadian province of Quebec in 2013.
The PHMSA is vetting public comments on the proposal until December 23. Its notice of the measure was filed with the federal register and is available here.