Shipping liquefied natural gas by rail is now illegal again
What happened
The US government has reversed a 2020 rule that allowed liquefied natural gas (LNG) to be transported by rail. This means companies can no longer use trains to move large quantities of LNG across the country.
Why it matters
In 2020, the Trump administration allowed LNG to be shipped by rail, a cheaper option than pipelines or trucks. This rule change was challenged in court. Now, a court decision has forced the government to revert to the previous ban. This means companies that planned to use rail for LNG transport will need to find other, more expensive methods.
The signal
Watch for new proposals or legislative efforts to re-enable LNG rail transport, or for increased investment in alternative transport infrastructure like pipelines.