News & Reviews News Wire Federal regulators pause controversial rule allowing shipment of LNG by rail

Federal regulators pause controversial rule allowing shipment of LNG by rail

By Bill Stephens | September 5, 2023

Further study is required, the Pipeline and Hazardous Materials Safety Administration says

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Just 62 of more than 430,000 tank cars in the North American fleet are the DOT-113-C120W cars needed to move liquefied natural gas (LNG), like this one built by Chart Industries. Chart Industries

WASHINGTON – Federal regulators have suspended a rule that would have allowed the shipment of liquefied natural gas in railroad tank cars.

The Pipeline and Hazardous Materials Safety Administration, in coordination with the Federal Railroad Administration, last week said the rule adopted in 2020 would be shelved until whichever comes first: June 30, 2025 or completion of a new rulemaking process determines whether any modifications to the 2020 rule are required.

PHMSA said suspending the current rule would:

  • Avoid potential risks to public health and safety.
  • Allow for the completion of ongoing testing and evaluation efforts being conducted by the FRA and the National Academy of Sciences, Engineering, and Medicine.
  • Provide the opportunity for the potential development of mitigation measures and operational controls for movement of LNG.
  • Help prevent shippers from ordering LNG tank cars that may not meet whatever new guidelines are proposed.
  • Enable public comment on ongoing testing and evaluation efforts.

Rail transport of LNG will still be permitted under an existing special permit or in ISO tanks. The 2020 LNG rule would have allowed DOT–113-C120W9 tank cars to carry LNG.

The 2020 rule was controversial and prompted six environmental groups, 14 states, and a Native American tribe to challenge the decision in federal courts.

PHMSA said it is working with the National Transportation Safety Board to learn all it can from the East Palestine, Ohio, hazardous materials derailment and to determine whether lessons from the Feb. 3, 2023, wreck should be applied to rail shipment of LNG.

CSX Transportation told PHMSA that potential LNG projects along its lines had been shelved due to regulatory uncertainty.

10 thoughts on “Federal regulators pause controversial rule allowing shipment of LNG by rail

  1. I have this uncomfortable feeling that trying to outlaw LNG on railroads connects to the idea that jurisdictions like NYC are outlawing natural gas in future building construction, based on the thought that LNG is a worse greenhouse gas than CO2, which is complete nonsense, as only leaking UNburned LNG is guilty of that. Also, it is said that the electrical industry wants to be completely dominant in building construction. Sounds both dangerous and corrupt to me. And if so, LPG could be next to be outlawed some day. And BTW, LPG has always been used in railroad switch heaters preventing winter ice. That said, isn’t LNG also used for switch heaters in more urban areas? Also, LPG is heavier than air whereas LNG is lighter than air.
    https://nypost.com/2023/01/11/hochuls-plan-to-ban-sale-of-gas-stoves-fuels-outrage/

  2. I think the only reason they want to transport LNG by rail is for export. I think most home use LPG for heating and cooking. LNG is to hard to store as Chris says it is a cryogenic. There is a waste hauling company in my area that uses LNG but has a compressor station in there yard an gets there gas from the local utility pipe line.

  3. Sounds as if LNG shipments will move to trucks. Now as folks drive along the highways they will meet or pass these shipments. What if one of these shipments gets in a wreck or blows up?

    1. LNG has been moving by truck for a number of years as a way to get natural gas from an isolated well to a pipeline. I’m really having a hard time understanding why it is ship LNG by truck but not by rail.

  4. Correction: I meant to say using trucks to transport it will drive the cost up. Also, I have no idea what capacity exists out in the trucking world to take over for rail.

    1. LPG is not and will not be restricted under this rule review. LPG continues to be hauled in rail freight.

    1. Joseph,
      Apparently very little given the small rail fleet available under the proposal. It has to move somehow so I assume it will be by whatever trucks. Some people in my area use it for cooking year round and its common to use it to supplement our winter heating. Using rail by trucks to transport it will drive the costs upwards. Of course the current administration will then blame the suppliers for the price increase once the Public starts complaining.

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