Rulemaking Proposal Aims to Modernize LNG Regulations
Earlier this week, U.S. Transportation Secretary Sean P. Duffy announced that the Pipeline and Hazardous Materials Safety Administration (PHMSA) will seek comments on a rulemaking proposal to update and enhance outdated regulations for liquified natural gas (LNG) projects. The proposal aims to expedite the development of new LNG infrastructure, increase domestic export capacity, and expand the LNG market. Following President Trump’s initial executive orders, this rulemaking is one of several efforts to “Unleash American Energy” and reduce regulatory burdens on the industry.
The Center for LNG, the U.S. LNG industry’s leading trade group, says the rules are outdated. Executive Director Charlie Riedl stated, “This effort represents a meaningful opportunity to update prescriptive regulations with a performance-based approach that improves safety outcomes while supporting continued U.S. LNG leadership on the global stage.” He further emphasized that the industry is committed to ensuring the rule is “effective, science-driven, and reflective of industry best practices.” Additionally, Ben Kochman, PHMSA’s Active Administrator, clarified that these rulemakings will ultimately “contribute to lower costs for American consumers and help our allies abroad.”
PHMSA’s request for comments marks the initial steps in the agency’s commitment to answering President Trump’s call to reassess onerous regulations that hamper capital-intensive energy projects. Other agencies, such as the U.S. Army Corps of Engineers Mississippi Valley Division, have begun reviewing agency policy in line with the President’s previous executive orders. By reducing unnecessary regulatory burdens on both industry and the public, these rulemakings could lead to substantial cost savings.