LNG

US attorneys general in Democratic Party-ruled states and cities have started a new campaign against hydrocarbons by trying to force the government regulatory agency, the Pipeline and Hazardous Materials Safety Administration (PHMSA), to ban for ever all transportation of liquefied natural gas by rail.

A coalition of 14 state attorneys general have urged the PHMSA to turn a suspension order on allowing bulk transport of LNG in specialized rail-car tanks into a total ban.

The rule opening the way for LNG transportation in rail cars was created after a 2019 executive order by the Trump Administration, which prompted the Department of Transportation to regulate LNG the same “as other cryogenic liquids and permit LNG to be transported” in approved rail-car storage tanks.

The PHMSA has noted that LNG is allowed to be transported by rail in Canada, Europe and in Japan.

“LNG is permitted to be transported by rail in Europe in specially designed tank cars and in Japan, LNG has been authorized to be transported by rail since 2000, in specially designed freight railcars and container railcars,” the agency said.

However, the Democratic Party AGs also brought in anti-hydrocarbon arguments by stating that allowing companies to transport LNG could “potentially create more greenhouse gases from LNG production and from liquefaction” plants.

The coalition of AGs is led by the state of Maryland’s Brian Frosh and New York’s AG Letitia James.

Policy confusion

The federal agency in the initial suspension of rail transportation of LNG had referred to public concerns about transporting the fuel and ordered a suspension pending further studies.

The PHMSA said at the time that its move was necessary to help companies interested in shipping LNG by rail to suspend investments in infrastructure that would be facing further regulations.

However, instead of enacting more thorough regulations, the coalition called for the “prompt suspension” of the final rule indefinitely.

The AGs claimed that the go-ahead for transporting LNG by rail was based on “flawed safety assessments” by officials of the former Administration.

“While repeal of the 2020 rule would be the most durable corrective action, the states support prompt suspension of those regulations in the meantime,” the coalition of AGs wrote in comments to the Biden Administration.

Many of the same AGs submitted comments against the final rule when it was proposed in January 2020. The AGs also had joined a lawsuit against the rule in August 2020.

No LNG was transported by rail between the final rule’s approval and the PHMSA’s November suspension. 

The PHMSA said it was aiming to ensure shipments did not occur before the new rules were in place, which is expected by June 2024. 

Sept 15 (LNGJ) - Fluxys of Belgium said its Zeebrugge LNG import terminal would be organising more container loads by train after a first shipment was sent to Italy by rail operator Lineas in a Prima LNG container. “Intermodal LNG transport is an attractive proposition as it has several advantages. It reduces emissions of greenhouse gases and air pollutants while being more cost efficient and reaching new destinations across Europe,” said Fluxys.

   “The port of Zeebrugge offers particularly good connections with the four major rail hubs in Europe: Antwerp, Cologne, Rotterdam and Dourges. From there, LNG containers can be further dispatched across Europe,” added the Belgian company.