PHMSA Issues Advance Notice of Proposed Rulemaking to Modernize LNG Facility Regulations
On May 5, 2025, the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) published in the Federal Register an Advance Notice of Proposed Rulemaking (ANPRM) titled “Pipeline Safety: Amendments to Liquefied Natural Gas Facilities.” The ANPRM solicits comments on future revisions and updates to the pipeline safety regulations governing liquefied natural gas (LNG) facilities, located at 49 CFR Part 193 (Part 193). PHMSA last updated its LNG safety standards in 2004. Since that time, the U.S. LNG industry has undergone expansive growth, with the U.S. now supplying approximately 22% of global LNG demand, primarily to customers in Europe and Asia. In parallel, LNG technologies have advanced beyond the traditional peak-shaving and import terminals in service in 2004, to encompass small-scale, mobile and large-scale export infrastructure. These developments have resulted in calls from the public to update PHMSA’s regulatory framework, and any final rule to result from the ANPRM would consummate statutory directives and public petitions dating to 2016.
PHMSA’s rulemaking arises from two prior pipeline safety statutes enacted under President Obama and during the first Trump Administration. Section 27 of the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2016 (PIPES Act of 2016; P.L. 114-183) directed PHMSA to revise its minimum safety standards for permanent, small-scale LNG facilities. That directive was expanded in Section 110 of the PIPES Act of 2020 (P.L. 116-260), which required PHMSA to adopt a risk-based regulatory framework for large-scale LNG facilities by December 27, 2023. Layered on top of those directives are key components of the Trump administration’s energy deregulatory agenda set forth in several executive orders (EO), including EO 14154 (Unleashing American Energy), EO 14192 (Unleashing Prosperity Through Deregulation) and EO 14156 (Declaring a National Energy Emergency). These directives instruct federal agencies to reduce regulatory burdens on domestic energy producers, streamline infrastructure permitting and modernize outdated standards that may impede energy development. In parallel with legislative and executive direction, PHMSA is responding to years of industry petitions urging it to revise Part 193 to incorporate the latest edition of the National Fire Protection Association (NFPA) Standard for the Production, Storage and Handling of LNG (NFPA 59A) from 2023.
The ANPRM seeks public comments on a broad range of issues intended to guide a future Notice of Proposed Rulemaking (NPRM). These include potential updates to safety standards for LNG facility siting, design, construction, operation and maintenance, much of which still references NFPA 59A-2001. PHMSA is considering whether to incorporate the 2023 edition of NFPA 59A, which includes expanded provisions for mobile, temporary and small-scale LNG infrastructure. The agency is also evaluating how to implement a risk-based framework for large-scale facilities, whether certain mandatory NFPA provisions should be made permissive, and whether duplicative or outdated reporting requirements under Part 193 should be revised or rescinded.
In total, the ANPRM poses more than 50 questions for stakeholder input, covering technical feasibility, cost-benefit considerations, interagency jurisdictional clarity and opportunities to streamline compliance. PHMSA also invites comments on how to align its regulatory interpretations with current industry practices and new technological standards. Amongst the questions posed are whether PHMSA can and should rationalize its safety regulations with regulations enforced by the Federal Energy Regulatory Commission (FERC), the federal agency with authority to permit the siting, construction, and operation of LNG import and export terminal facilities. PHMSA also asks how it can design its future NPRM in a manner that would be deregulatory and lead to cost savings for the industry, a goal embodied in the various EOs. A public meeting will be held to supplement the comment period and further define the scope of the forthcoming NPRM.
Next Steps
Unless extended, the public comment period will remain open through July 7, 2025. There have been no announcements yet on the timeline for drafting the NPRM, the finalization of which will result in updates to the Code of Federal Regulations. EO 14192 requires agencies that propose new regulations for notice and comment during Fiscal Year 2025 to identify at least 10 existing regulations to be repealed. It is unclear whether PHMSA would repeal existing regulations in Part 193 to comply with the EO. Moreover, the timing of any new Part 193 regulations may impact LNG export terminal facilities, either under construction, not yet under construction or approaching a final investment decision.
Akin’s environmental and natural resources, government contracts and corporate teams are well equipped to assist clients in preparing public comments and to answer questions that may arise relating to the ANPRM and its regulatory and commercial implications.
