PHMSA To Suspend LNG-By-Rail Rule For Further Study
The Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration, has issued a final rule that suspends a Trump administration rule that would have allowed liquefied natural gas (LNG) transportation by rail.
The rule had been on hold after environmental groups and 14 states filed lawsuits to challenge it. However, it will be officially suspended so that the safety of LNG-by-rail can be furthered tested and studied, according to a PHMSA notice published today in the Federal Register.
Uncertainty over the rule, which would have required the use of specialized rail tank cars to transport LNG, also has kept companies from investing in such rail cars, according to PHMSA.