Cutting LNG Bunkering Red Tape Act
The Cutting LNG Bunkering Red Tape Act would amend the Natural Gas Act to clarify how LNG bunkering (fueling ships with natural gas) is treated for export purposes. The bill adds a new provision stating that bunkering of natural gas for use as marine fuel is not considered an export unless the transfer to the receiving vessel takes place in the territorial sea or inland waters of a foreign country. In practical terms, this creates a regulatory exemption for LNG bunkering conducted in U.S. waters (and even bunkering outside U.S. waters that does not occur in a foreign country’s territorial sea or inland waters) from export licensing, while transfers occurring in foreign territorial seas or inland waters would be treated as exports and subject to export controls. The aim is to reduce regulatory red tape for bunkering activities and streamline operations in U.S. maritime energy supply chains.
Key Points
- 1Adds a new subsection (g) to Section 3 of the Natural Gas Act to address bunkering.
- 2Defines bunkering as the transfer of natural gas to a receiving vessel for use as marine fuel.
- 3Provides that bunkering is not an export unless the transfer occurs in the territorial sea or inland waters of a foreign country.
- 4Applies regardless of the flag or country of registry of either vessel.
- 5Purpose is to reduce regulatory burden and speed up LNG bunkering operations while preserving export controls when bunkering happens in foreign waters.