Houston Chronicle

Trump eyes rail for LNG transport

Decision to loosen restrictio­ns expected early next year

- By James Osborne STAFF WRITER

WASHINGTON — Liquefied natural gas could soon move around the country by rail as the Trump administra­tion moves to loosen restrictio­ns on transporti­ng LNG in an effort to further boost to the nation’s energy sector.

The Department of Transporta­tion has proposed allowing railroads to begin transporti­ng LNG in cryogenic tanker cars, which can maintain temperatur­es of less than minus 300 degrees and are used to move chemicals such as ammonia and ethylene. A final decision is expected early next year.

The railroad could offer an enticing alternativ­e to natural gas customers as pipeline projects are under increasing scrutiny over natural gas’s contributi­on to climate change, with New York Gov. Andrew Cuomo blocking constructi­on of new pipelines running through his state and into New England. At the same time, the rush to develop oil fields in West Texas — far from the nation’s pipeline network — has resulted in many drillers flaring the natural gas that is a byproduct of crude production.

“Pipelines are still the most optimal way to transport gas, but LNG by rail can be a great way to move gas into places with pipeline constraint­s, like the Northeast and potentiall­y out of the Permian Basin,” said Katie Ehly, senior policy adviser at the trade group Natural Gas Supply Associatio­n. “It just makes sense.”

But tanker cars full of flammable natural gas traveling through American cities and towns represent a significan­t safety risk, the scale of which was evidenced six years ago when an oil train derailed in Lac-Mégantic, Quebec, setting off a massive explosion that killed more than 40 people.

The Pipeline and Hazardous Materials Safety Administra­tion, however, maintains it has stud

ied the risks and decided they are manageable.

“This major rule will establish a safe, reliable and durable mode of transporta­tion for LNG, while substantia­lly increasing economic benefits and our nation’s energy competitiv­eness in the global market,” PHMSA Administra­tor Skip Elliott said in a statement.

But some are questionin­g the thoroughne­ss with which the administra­tion has approached its review of longtime restrictio­ns placed on the transport of liquefied natural gas.

In August, the environmen­tal group Earthjusti­ce, representi­ng a coalition of activist groups, warned that the administra­tion has not done enough to establish that LNG could be moved safely by rail.

Under special permits, railroads in Florida and Alaska have been allowed to move small quantities of LNG through pilot projects — using cryogenic containers placed on flat-bed rail cars, as opposed to traditiona­l tanker cars. But the administra­tion has yet to release any data from those projects to prove that moving LNG by rail is safe, said Fred Millar, an independen­t consultant formerly of the environmen­tal group Friends of the Earth.

“The environmen­tal assessment was a flimsy 23-page document, and they can say no disaster yet after these pilot projects,” he said. “Now we’re in the Trump era, industry is going in and getting everything it can.”

The American Associatio­n of Railroads, a trade group, did not respond to requests for comment.

The transporta­tion of LNG by rail car is already allowed in Canada and Japan. The oil company Japan Petroleum Exploratio­n has moved LNG by cryogenic containers loaded onto trains for close to two decades, to get natural gas to areas where pipelines do not reach.

In Texas, some are already looking at a similar approach.

Énestas, a Mexican company with offices in Houston, uses trucks to transport natural gas from South Texas to clients in Mexico not located near pipelines. But with the Trump administra­tion moving ahead on allowing LNG shipments by rail, the company is looking into the feasibilit­y of using trains, said Gregory Pilkinton, vice president of sales and business developmen­t at Énestas.

“We’re following it closely,” he said. “We move a significan­t volume of LNG across to Mexico, and if we could do it more economical­ly by rail, that would be fantastic.”

 ?? Associated Press file photo ?? The Department of Transporta­tion has proposed allowing railroads to begin transporti­ng LNG in cryogenic tanker cars, which can maintain temperatur­es of less than minus 300 degrees.
Associated Press file photo The Department of Transporta­tion has proposed allowing railroads to begin transporti­ng LNG in cryogenic tanker cars, which can maintain temperatur­es of less than minus 300 degrees.

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