H.R. 4760: Cutting LNG Bunkering Red Tape Act

This bill, known as the Cutting LNG Bunkering Red Tape Act, proposes changes to the Natural Gas Act regarding the handling of liquefied natural gas (LNG) used for bunkering, which is the process of supplying fuel to vessels. The key points of the bill are as follows:

1. Definition of Bunkering

The bill clarifies that when LNG is provided to a ship as fuel (bunkering), it will not be considered an export unless the transfer of LNG takes place in the territorial waters of a foreign country. This means that if LNG is transferred to a vessel in U.S. waters, it will not be subject to export regulations under the Natural Gas Act.

2. Impact on Regulations

By stating that these transfers are not exports unless they occur in foreign waters, the bill aims to reduce regulatory burdens associated with bunkering. This could make it easier for ships to refuel in U.S. ports without going through the more complex export approval process.

3. Allowing More Flexibility

The bill seeks to promote the use of LNG as a marine fuel by providing flexibility for domestic operations and facilitating the growth of the LNG bunkering market. It aims to encourage more shipping companies to use LNG, which is typically considered a cleaner alternative to traditional marine fuels.

4. Legislative Context

This bill was introduced in the U.S. House of Representatives, reflecting ongoing discussions about energy regulations and the promotion of cleaner fuel sources for maritime transport.

Relevant Companies

• CMI (Cummins Inc.): May be affected as it produces engines that can use LNG as a fuel source.
• GLNG (GasLog Ltd.): Operates a fleet of LNG carriers and may benefit from a more favorable regulatory environment for LNG transfer.
• OSK (Oshkosh Corporation): Engages in manufacturing vehicles that can run on LNG, potentially benefiting from increased usage of LNG in the trucking sector.
• EE (EnLink Midstream): Engaged in natural gas transportation and could be impacted by changes in LNG bunkering regulations.