What is LNG by Rail?

LNG by rail is just as it sounds, which is the transport of liquefied natural gas via specialty rail cars. But it isn’t nearly that simple, since the practice is quite controversial. In the United States, LNG by rail was all set to enter service until President Biden issued a reality check. “The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) is suspending a Trump administration final rule that authorized transporting liquefied natural gas (LNG) by rail car, according to a notice published in the Federal Register. PHMSA announced a Notice of Proposed Rulemaking to suspend amendments to its Hazardous Materials Regulations finalized last year, which authorized moving LNG by rail. The agency said it wants to put any plans to move the super-chilled fuel by rail car on hold as it “conducts a thorough evaluation” of its regulations in a separate rule-making. In the summer of 2020, PHMSA finalized the rule, along with the Federal Railroad Administration, to allow the bulk transport of LNG in specialized rail tank cars. Environmental groups and a coalition of states promptly filed a lawsuit in an effort to block the rule. No transportation of LNG by rail has occurred, PHMSA said. The “temporary suspension” ensures “no such transportation will occur” before it can complete the companion rule-making process, or before June 30, 2024, whichever comes first.” – NGI, Nov 11, 2021