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According to a statement by DOE, the order modifies a prior order issued to Jax LNG under the previous administration that asserted new oversight for the use of LNG to power marine vessels, also known as LNG bunkering.
Jax LNG is a small-scale coastal LNG facility located at Dames Point near Jacksonville, Florida that provides LNG as fuel to ships, including cruise ships, car carriers, petroleum tankers, and containerships.
The facility has a capacity of 360,000 gallon per day LNG with 4 million gallons of storage.
It is a joint venture between Seaside LNG and Pivotal LNG, a subsidiary of BHE GT&S.
By issuing an order on rehearing, DOE is modifying an order originally issued in December 2024.
The modified order clarifies that DOE is withdrawing the exercise of its jurisdiction under the Natural Gas Act (NGA) for ship-to-ship transfers of LNG for marine fuel use at a US. port, in US waters, or in international waters.
The only bunkering-related activity that will continue to be considered an export is when there are ship-to-ship transfers of US LNG when the receiving ship is located in the territorial sea of a foreign country, including foreign ports, according to DOE.
DOE has left unchanged its authorization to Jax to export LNG via ISO container.
LNG fuel on the rise
DOE said use of LNG for marine fuel has increased in recent years and is expected to continue to increase amid more stringent emissions regulations for shipping.
According to the IEA’s January 2025 quarterly gas report, based on the current order book for vessels, the number of LNG-fueled ships is expected to almost double and reach over 1,200 vessels by 2028.
DNV’s data recently showed that orders for LNG-powered vessels jumped 103 percent to 264 ships last year.
“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.
