Anticipating Changes to LNG Regulations

With the recent growth of LNG producers and increased public awareness and scrutiny of the product, LNG has come to the forefront of public conversation. Lawmakers have taken note and directed PHMSA to update existing LNG safety regulations in 49 CFR Part 193 and to establish an LNG Center of Excellence.

PHMSA anticipates publication of a Notice of Proposed Rulemaking (NPRM) regarding Amendments to LNG Facilities (RIN 2137-AF45) by the end of 2024. According to the February 2024 DOT Significant Rulemaking Report, this new rulemaking will incorporate industry standards into 193 and update requirements to address the risks associated with operating an LNG facility. These updates will address issues related to small scale LNG facilities required by Section 21 of the PIPES Act of 2016 and operating and maintenance standards of all applicable types of LNG facilities, as required by section 100 of the PIPES Act of 2020.

The LNG Center of Excellence’s primary responsibilities are to provide education, training, technological advancements, foster collaboration, and become a repository of LNG information and best practices, among other objectives. The ultimate goal of the LNG Center is to ensure that the United States is the leader and foremost expert in LNG operations. Congress has allocated up to $8.4 million to the project.

The final details of what form the Center will take, as well as the amount and nature of resources allocated to it, and how it will accomplish the goals set out for it by congress, have not yet been made available.

Additionally, there could be changes to the audit process for LNG operators pending the outcome of adjudication between FERC, PHMSA, and the US Coast Guard, all of whom presently have regulatory responsibility for different aspects of LNG facilities and operations.

Operators can expect that, with new rules and new resources, LNG will become an area of increased regulatory focus through rulemaking and enforcement activities. Of course, change in administration policy or administrative delays in rule publishing could slow these efforts, however as they are required by legislation they must, ultimately, be enacted. With all of this in mind, operators should consider reviewing their written procedures both prior to and after the promulgation of new rules.

Elemental experts develop written Operations & Maintenance procedures for operators complying with requirements of Part 193. We provide guidance on existing code language and can perform detailed analysis of new rules when they are issued. Our regulatory analysis team will review the rule once it is published to the federal register and can provide a customized solution and individualized support with regulations, audits, and procedures. We can help you come up with a plan of action to be ready for what comes.

Partner with Elemental to position yourself to proactively deal with new rules as we anticipate changes to existing code language. Contact us today to start your LNG O&M Plan review!