US eases restrictions on LNG bunkering

The US Department of Energy (DoE) has modified a prior order issued to JAX LNG, removing regulatory barriers to the use of liquefied natural gas (LNG) as marine fuel.

PHOTO: JAX LNG-operated bunker barge conducting ship-to-ship LNG bunkering in the US. Jacksonville Port Authority

The new order clarifies that DoE will no longer exercise its jurisdiction under the Natural Gas Act (NGA) over ship-to-ship LNG bunkering conducted in US ports, US waters or international waters.

However, ship-to-ship LNG bunkering will still be considered an export if the receiving vessel is located in the territorial waters of a foreign country, including foreign ports, the agency clarified.

This decision follows a rehearing request from JAX LNG, which challenged a December 2024 order that extended US export regulations to LNG bunkering when the receiving vessel was foreign-registered.

“The DoE erred in concluding that a ship-to-ship transfer of LNG from a bunkering vessel to another ship, regardless of where the transfer occurs, includes elements of both shipment from the United States and ‘subsequent entry into commerce at the destination, where the destination is a foreign country’", JAX argued in its request for a rehearing.

JAX LNG, a coastal LNG facility in Jacksonville, Florida, supplies LNG for bunkering to various vessel types, including container ships, cruise ships, car carriers and oil tankers.

With the new ruling, DoE has eliminated regulatory uncertainty surrounding LNG’s use as a marine fuel, the agency added.

This decision is “a significant step in reducing regulatory burdens and helping this important segment of the LNG market continue to grow,” Tala Goudarzi, principal deputy assistant secretary of the DOE’s Office of Fossil Energy and Carbon Management said.

By Konica Bhatt

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