DOE order removes certain restrictions on LNG bunkering

On February 25, 2025, the Department of Energy (DOE) issued an Order Granting Request for Rehearing and Clarification and Modifying Order (Order 5233-A) (the Modified Order) clarifying that DOE will no longer consider ship-to-ship transfers of liquified natural gas (LNG) used as a fuel for marine vessels an “export” for the purposes of Section 3 the Natural Gas Act of 1938 (the NGA) when the receiving ship is located in US ports, US waters or international waters.¹

However, DOE reaffirmed its position that LNG bunkering occurring in the territorial waters of a foreign country or foreign port will be considered “exports” for the purposes of the NGA.

This is a significant development for the US LNG market because the export of LNG is regulated by DOE under Section 3 of the NGA, requiring exporters to submit applications and wait for approval prior to conducting their activities. The DOE’s more narrow interpretation of “exports” set forth in the Modified Order could significantly reduce the regulatory burden placed on the use of LNG as a marine fuel and on the US LNG industry at large. Read our full article here.