File Photo: The LNG bunkering barge Clean Jacksonville refuels one of TOTE’s LNG-powered containerships. Photo taken in 2021. Credit: GTT
The U.S. Department of Energy has issued an order removing regulatory barriers for using liquefied natural gas (LNG) as marine fuel, signaling a significant shift in policy that could accelerate the maritime industry’s transition to alternative fuels.
The new order modifies a previous directive issued by the Biden Administration to JAX LNG in December 2024 that had imposed additional oversight on LNG bunkering operations. The order classified ship-to-ship transfers of LNG for marine fuel use as exports under the Natural Gas Act (NGA) if the receiving vessel was foreign-registered, irrespective of where the transfer occurred—whether at a U.S. port, in U.S. waters, or in international waters. Consequently, companies like JAX LNG were required to obtain export authorizations from the DOE. ?
By issuing an Order on Rehearing, the DOE is now withdrawing its jurisdiction under the transfers of LNG for marine fuel use at U.S. ports, in U.S. waters, or in international waters.
“Today’s action is a significant step in reducing regulatory burdens and helping this important segment of the LNG market continue to grow,” said Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management.
Under the modified regulations, the only bunkering-related activity that will continue to be classified as an export is when ship-to-ship transfers of U.S. LNG occur with the receiving vessel located in the territorial waters of a foreign country, including foreign ports. The DOE has maintained its authorization for JAX to export LNG via ISO container.
JAX LNG, a small-scale coastal LNG facility near Jacksonville, Florida, provides LNG as fuel to various vessel types, including cruise ships, car carriers, petroleum tankers, and containerships.
The regulatory change comes amid growing adoption of LNG as a marine fuel. According to the International Energy Agency’s January 2025 Quarterly Gas Report, the number of LNG-fueled ships is projected to nearly double to over 1,200 vessels by 2028.
The maritime industry has shown increasing interest in alternative fuels, with 2024 witnessing a 38% year-over-year increase in alternative-fueled vessel orders, totaling 515 ships. LNG dominated these orders with 264 vessels commissioned—more than double the previous year’s figures.
Containerships and car carriers are leading this transition, accounting for 62% of all alternative fuel orders. Notably, 69% of all containership orders in 2024 were for vessels capable of running on alternative fuels, with LNG being the preferred choice at 67%.
The DOE’s decision aligns with broader industry trends toward cleaner shipping fuels in response to increasingly stringent emissions regulations. As the maritime industry continues its decarbonization efforts, this regulatory change may serve as a catalyst for further LNG adoption in the global shipping fleet.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 108,738 members that receive our newsletter.
Have a news tip? Let us know.
A BlackRock-led consortium has reached “in principle” agreements to acquire port assets owned by CK Hutchison Holdings Limited at the Panama Canal. The deal, valued at $22.8 billion, includes port...
The world’s largest and oldest iceberg, A23a, has run aground near South Georgia Island in the sub-Antarctic, according to confirmation from the British Antarctic Survey (BAS). This trillion-tonne ice giant,...
A bipartisan group of senators has introduced legislation aimed at monitoring and countering China’s expanding control over strategic ports worldwide, addressing what lawmakers call a direct threat to American national...
Maritime and offshore news trusted by our 108,738 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
