Train cars can now carry liquefied natural gas across the US
What happened
The US Department of Transportation has finalized a rule allowing liquefied natural gas to be shipped by rail. This means companies can now move large quantities of natural gas across the country using existing freight rail lines.
Why it matters
For years, moving large volumes of liquefied natural gas (LNG) across the US was mostly limited to pipelines or ships. This new rule opens up rail as a major new transport option. It could change how LNG is distributed, especially to areas not served by pipelines, and potentially lower shipping costs for producers.
The signal
Watch for new rail infrastructure investments near LNG production sites and export terminals, and whether rail transport becomes a significant portion of total LNG shipments in the next two years.