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US lawmakers introduce legislation to cut LNG bunkering red tape

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Cutting LNG Bunkering Red Tape Act, a bill that codifies a Trump-era DOE order clarifying that STS transfers of LNG used as marine fuel are not considered an export unless operation is conducted in foreign waters.
RESIZED william william on Unsplash

US Congresswoman Laurel Lee and Congressman August Pfluger on Friday (25 July) introduced the Cutting LNG Bunkering Red Tape Act, a bill that codifies a Trump-era Department of Energy (DOE) order clarifying that ship-to-ship transfers of liquefied natural gas (LNG) used as marine fuel—commonly known as LNG bunkering—are not considered exports under Section 3 of the Natural Gas Act unless conducted in foreign waters. 

The bill is referred to the House Committee on Energy and Commerce.

“The Biden Administration’s harmful energy policies have created unnecessary regulatory burdens that stall innovation and weaken American energy leadership,”said Rep. Lee. 

“Liquefied natural gas is a more efficient, cleaner, and cost-effective energy source. My bill ensures that LNG bunkering is not hindered by red tape, so that ports in Florida and across the nation can continue to expand, drive job creation, and compete globally.”

“LNG exports unequivocally benefit our economy, domestic prices, national security, and partners and allies around the world that want our product. Unfortunately, the Biden Administration spent four years imposing one regulation after another on these exports, stifling the energy industry,” said Rep. Pfluger.

“This legislation permanently reverses one of these misguided policies to ensure American LNG can compete on the global stage by removing regulatory uncertainty and streamlining the use of it as a cleaner, more efficient fuel source for maritime transportation. I am proud to lead this legislation with my good friend from Florida, Representative Laurel Lee.”

Background

During the Biden Administration, DOE issued an order treating certain domestic LNG ship-to-ship transfers as exports, subjecting them to extensive federal regulation and public interest review. In contrast, President Trump reversed this position, rightly determining that LNG bunkering within U.S. waters should not be treated as an export. Rep. Lee’s legislation would cement this clarification in federal law.

Florida is a major hub for marine transportation, including cruise ships and other vessels, increasingly turning to LNG as a clean and modern fuel source. JAX LNG, based in Jacksonville, has been a national leader in LNG bunkering, but has faced unnecessary regulatory hurdles due to shifting federal interpretations.

 

Photo credit: william william on Unsplash
Published: 30 July, 2025