U.S. Proposes LNG Safety Regulations to Boost Exports

The U.S. Department of Transportation has proposed new safety regulations for liquefied natural gas (LNG) facilities, aiming to accelerate infrastructure development and lower operating costs.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued the proposal, which modernizes federal LNG safety requirements by incorporating standards from the National Fire Protection Association. Transportation Secretary Sean Duffy estimates that these updates could save LNG operators around $100 million annually while maintaining safety protections.

The U.S. is expected to enhance its LNG export capacity by approximately 100 million metric tons annually by the decade's end. This expansion is driven by geopolitical disruptions affecting Middle Eastern gas shipments, prompting international buyers to seek alternative suppliers.

Since early 2025, projects representing over 50 million metric tons of annual capacity have reached final investment decisions. However, challenges remain, including securing Federal Energy Regulatory Commission approvals and addressing potential legal issues.

Delfin LNG's floating export facility exemplifies the need for infrastructure safety approvals, as its pipeline has not received PHMSA clearance following an explosion earlier this year.