Policy Issues

CLNG works on a variety of issues in the energy and climate policy spaces. As the energy mix of the United States and world at large evolves, LNG will play a vital role in reducing worldwide carbon emissions, as well as encouraging the growth of renewable energy by providing the steady, reliable baseload power that allows solar and wind energy to thrive.

Exports

Energy security is vital, and U.S. LNG is playing a critical role. Certainty is vital for ensuring the continued growth and benefits of U.S. LNG.

CLNG advocates for regulatory certainty in the LNG facility review process, ensuring that U.S. LNG can compete on a level footing with global LNG suppliers, while providing buyers and developers of U.S. LNG with greater long term certainty. CLNG advocacy on regulatory certainty includes advocating for clear language, timelines and scopes on regulations that affect the permitting of LNG facilities throughout the federal government.

CLNG advocates for normalized trade relations between the United States and our trading partners. Exports of U.S. LNG help ease trade imbalances, all while providing for increased economic benefits at home.

Federal Oversight of LNG Exports

U.S. LNG exports are under the oversight of numerous federal agencies and bodies including, but not limited to, the:

LNG as a Fuel

Liquefied natural gas (LNG) has numerous uses in the transportation sector. LNG is increasingly being used by the United States and countries around the world to fuel ships, bus fleets and trucks as we seek cleaner air by lowering our carbon and greenhouse gas emissions. Experts predict a bright future for LNG as a transportation fuel. Below are some of the opportunities and issues surrounding LNG’s role as a fuel.

“Bunkering” is the supplying of fuel to ships and includes the logistics of loading and storing fuel.

The proliferation of LNG-fueled ships requires investment in LNG bunkering operations at seaports.  CLNG advocates for regulatory certainty, which is necessary to support a thriving investment environment for LNG bunkering infrastructure. Bunkering operations are currently located at only a few U.S. seaports, but bunkering is expected to grow to more ports as more ships choose LNG as a fuel. U.S. LNG bunkering currently takes place at two locations – Jacksonville, Florida and Port Fourchon, Louisiana – with a third facility under development in Tacoma, Washington. Jacksonville is the largest LNG bunkering operation in the United States, with two bunkering facilities: JAX LNG, which is currently operational; and the upcoming Eagle LNG. JAX LNG continues to drive down emissions in the marine space through service agreements with foreign and domestic ships as well as renewable LNG offerings.

Compressed natural gas (CNG) and liquefied natural gas (LNG) are both used as vehicle fuels, however LNG is better suited for heavy-duty vehicles traveling long distances. The expanded use of natural gas as a transportation fuel, whether in the form of LNG or CNG, can help reduce air pollution and carbon emissions from the transportation sector.

According to NGV America, the voice of the natural gas vehicle industry:

  • On a well-to-wheel lifecycle basis, vehicles powered by natural gas emit between 13 and 21 percent fewer greenhouse gas emissions compared to gasoline and diesel-powered vehicles.
  • Natural gas-powered vehicles can also improve local air quality as they emit approximately 80 percent fewer non-methane hydrocarbons and 50 less NOx gas.

Safety

Safety is the cornerstone of the LNG industry in the United States and guides the entire LNG process from construction of a facility, to the liquefaction process itself, as well as plant security, loading, unloading and transportation. The U.S. LNG industry is world-class in its safety measures and invests millions annually in state-of-the-art equipment and safety practices. The safety record for U.S. LNG is excellent.

LNG facilities fall under the regulatory oversight of several federal agencies, including the Department of Transportation’s Pipelines and Hazardous Materials Safety Administration, the U.S. Coast Guard, the U.S. Maritime Administration, the Federal Maritime Commission, the Department of Transportation and the Federal Energy Regulatory Commission — in addition to adhering to state and local regulations.

CLNG is a proud member of TRANSCAER, a national voluntary task force that helps train up to 50,000 first responders annually and provides safety communication and awareness information to local communities.

CLNG works with federal agencies to ensure that the regulatory framework for safety oversight is modernized to be in step with today’s high-tech, innovative industry. Current regulations pertaining to LNG in the U.S. have worked well, but were written in 1980 for smaller LNG “peak-shaving” facilities that go into action on winter’s coldest days to supplement the available supply of natural gas for homes and businesses, as opposed to today’s larger LNG export facilities.

CLNG is working with the Pipelines and Hazardous Materials Safety Administration (PHMSA) and other stakeholders to address modernization of its LNG regulations – 49 CFR Part 193. Modernization of PHMSA’s LNG regulations would:

  • Allow PHMSA and LNG facilities to identify and deploy the latest in safety best practices.
  • Ideally, incorporate a risk-based approach that goes hand-in-hand with a focus on continuous improvement and enables the industry to focus on the technologies and areas that make the greatest impact.
  • Allow regulators to adopt a uniform approach, while allowing operators to constantly improve safety as new technology becomes available.

LNG is simply natural gas that is chilled to -260 degrees Fahrenheit, at which point it becomes a liquid that occupies 1/600th of its volume as a gas. It is stored at ambient pressure, and when exposed to a source of heat, LNG vaporizes back into natural gas. If spilled on land or water, it vaporizes and leaves no residue behind. Natural gas is only flammable within a gas-to-air concentration of 5 to 15 percent, according to an analysis by the Federal Energy Regulatory Commission (FERC). This makes fires and similar incidents along the supply chain unlikely and exceedingly rare. The DOE report also compared LNG safety to that of other fuels and concluded: “The physical and chemical properties of LNG render it safer than other commonly used hydrocarbons.”

LNG and the Environment

Natural gas, like other energy sources, has an impact on the environment. That impact has been largely positive over the last two decades, as greater use of natural gas and LNG have contributed to reduced carbon emissions and provided reliable support and back-up for renewable energy. Although the use of LNG has been instrumental in lowered emissions and improved air quality, natural gas does have an environmental footprint, including methane emissions and carbon emissions.

  • CLNG advocates for rules and policies that protect the environment while allowing consumers continued access to LNG and its environmental and economic benefits.
  • CLNG remains committed to the goals of the Paris Accords and COP27.

Natural gas has played a significant role in reducing CO2 emissions from the U.S. power sector to 25-year lows because of its relatively low carbon content and because of its role as an integral partner to renewables. CLNG members believe that those same benefits can be spread globally through competitive LNG markets.

NEPA is a fundamental tool to ensure the appropriate protection of the environment in federal regulations, mandating that federal agencies consider environmental impacts of their proposed actions.

The Center for LNG advocates for clear timelines and a clearly-defined scope for the effective implementation of NEPA by federal agencies, states and tribes so that needed infrastructure for economic growth can proceed with greater regulatory certainty and environmental protections.