The Department of Energy (DOE) has issued an order to remove barriers for the use of liquefied natural gas (LNG) as marine fuel to power vessels, according to Energy.gov's release.
The decision marks a shift in regulatory approach to support the LNG bunkering sector. The order modifies a prior directive issued to JAX LNG in December 2024 under the previous administration, which had imposed new oversight on LNG bunkering.
Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, stated, “Today’s action is a significant step in reducing regulatory burdens and helping this important segment of the LNG market continue to grow.”
Through an Order on Rehearing, DOE is withdrawing its jurisdiction under the Natural Gas Act (NGA) for ship-to-ship transfers of LNG for marine fuel use at U.S. ports, in U.S. waters, or in international waters. The only exception is ship-to-ship transfers of U.S. LNG when the receiving ship is in the territorial sea of a foreign country, including foreign ports, while JAX LNG retains its authorization to export LNG via ISO container.
JAX LNG, a small-scale coastal LNG facility located at Dames Point near Jacksonville, Florida, supplies LNG to various ships, including cruise ships, car carriers, petroleum tankers, and container ships. The use of LNG as marine fuel is projected to grow, with the IEA’s January 2025 Quarterly Gas Report estimating the number of LNG-fueled ships will almost double to over 1,200 vessels by 2028, driven by stricter emissions regulations.
The International Energy Agency’s projection of 1,200 LNG-fueled ships by 2028 reflects a global trend, driven by the International Maritime Organization’s goal to reduce shipping emissions by 50% by 2050 compared to 2008 levels.
A U.S. federal agency headquartered in Washington, D.C., the DOE oversees energy policy and research, including the promotion of cleaner fuels like LNG, with a budget of approximately $44 billion in 2025.