LNG Bunkering Gains Regulatory Support in the U.S. as DOE Removes Barriers
Liquefied natural gas (LNG) is regaining regulatory momentum in the United States, following the removal of key barriers by the Department of Energy (DOE). The move clears the way for LNG to be used more widely as a marine fuel, enhancing its role in powering ships.
DOE Withdraws Oversight, Streamlining LNG Bunkering
In February 2025, the DOE withdrew its oversight of LNG ship-to-ship transfers under the Natural Gas Act (NGA). This decision eliminates regulatory hurdles, enabling LNG bunkering operations to take place in U.S. ports, U.S. waters, and international waters. The change is expected to streamline operations, making LNG bunkering more efficient and accessible.
However, the U.S. government clarified that bunkering activities in the territorial waters of foreign nations, including foreign ports, will still be classified as an export.
Government Officials Applaud the Decision
Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, emphasized the significance of this policy shift, stating:
“Today’s action is a significant step in reducing regulatory burdens and helping this important segment of the LNG market continue to grow.”
The DOE’s new order reverses a December 2024 ruling that imposed additional oversight on JAX LNG, a small-scale LNG facility in Jacksonville, Florida. JAX LNG supplies LNG to various ship types, including cruise ships, car carriers, petroleum tankers, and container vessels.
LNG Market Rebounds Amid Policy Shifts
The broader policy landscape has fluctuated in recent years. In January 2024, the Biden administration paused pending approvals of LNG exports to non-free trade agreement (FTA) nations to review environmental and economic impacts. Critics viewed this as a reversal of previous commitments to LNG exports, leading organizations like the Pelican Institute and Liberty Justice Center to file lawsuits challenging the decision.
The recent easing of restrictions on LNG bunkering follows the return of President Donald Trump to the White House for a second term. In response to a declared national energy emergency, President Trump announced several measures, including:
- A temporary freeze on offshore wind leasing
- The reversal of the U.S. LNG export permitting pause
- Additional initiatives to support major oil and gas companies
U.S. LNG Bunkering Market Growth and Global Trends
Despite previous regulatory uncertainties, the U.S. LNG bunkering market is projected to reach $1.52 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032.
In February 2025, Reuters reported that 82% of the 8.35 million tonnes of U.S. LNG exports were sent to Europe, despite high prices and extreme weather conditions.
The demand for LNG as a marine fuel continues to rise, driven by stricter emissions regulations in global shipping. According to SEA-LNG’s “View from the Bridge” report, the number of LNG-fueled vessels in operation globally increased by 33% between October 2024 and January 2025, rising from 590 to 683 ships.
Additionally, LNG dual-fuel vessels accounted for 70% of all alternative-fueled tonnage ordered in 2024, excluding LNG carriers. This marks a notable increase from 43% in 2023, reflecting a strong industry shift toward cleaner marine fuel options.
Conclusion
With the DOE’s regulatory barriers removed, the U.S. is poised to expand its LNG bunkering capabilities, supporting the transition to lower-emission marine fuels. As demand for LNG grows globally, this policy shift is expected to reinforce the country’s position in the LNG market while aligning with industry efforts to meet stricter environmental regulations.
