The tides are turning for liquefied natural gas (LNG) in the United States, as regulatory shackles are lifted, paving the way for a cleaner, more efficient maritime future. With the Department of Energy (DOE) stepping back, LNG bunkering is set to become a game-changer for the shipping industry. Here’s how this bold move is reshaping the energy landscape.
The DOE Steps Aside: A Regulatory Revolution
In a landmark decision, the U.S. Department of Energy has withdrawn its oversight of LNG bunkering under the Natural Gas Act (NGA), effective February 2025. This means ship-to-ship transfers of LNG as a marine fuel will no longer face bureaucratic hurdles in U.S. ports, waters, or even international waters. The move is expected to streamline operations, making LNG bunkering faster, cheaper, and more accessible.
Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management, hailed the decision as a “significant step in reducing regulatory burdens” and fostering growth in the LNG market. This reversal comes after a contentious 2024 order that imposed new oversight on LNG bunkering, sparking debates about the future of clean energy in the maritime sector.
A Political Energy Shift: Trump’s Return and LNG’s Rise
The timing of this decision is no coincidence. It follows President Donald Trump’s return to the White House, where he declared a national energy emergency and rolled back several environmental policies. Among them was a temporary freeze on offshore wind leasing and the reversal of the LNG export permitting pause. These moves signal a renewed focus on bolstering traditional energy sectors, including LNG, as part of a broader strategy to strengthen U.S. energy independence.
Critics argue that this shift undermines efforts to combat climate change, but proponents see it as a necessary step to support the growing demand for cleaner marine fuels. With the global shipping industry under pressure to reduce emissions, LNG has emerged as a viable alternative to traditional bunker fuels.
LNG Bunkering: A Market Poised for Explosive Growth
The U.S. LNG bunkering market is on track to hit $1.52 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.8% from 2025. This growth is fueled by increasing demand for cleaner fuels and stricter emissions regulations.
According to industry reports, LNG-fueled vessels are surging in popularity, with a 33% annual increase in operational units. In 2024, LNG dual-fuel ships accounted for 70% of alternative-fueled tonnage orders, up from 43% in 2023. Norway’s DNV reports that 34 new orders for alternative-fueled ships were placed in February 2025, with 33 of them being LNG-powered container ships.
The LNG bunkering infrastructure is also expanding rapidly. In February 2025 alone, eight new LNG bunker ships were ordered, marking a 50% increase in this vessel segment’s orderbook. This “parallel growth” in LNG-powered ships and bunkering infrastructure underscores the industry’s confidence in LNG as a long-term solution for sustainable shipping.
The Global Context: LNG’s Role in a Greener Future
While the U.S. is making strides in LNG bunkering, the global picture is equally compelling. Europe remains a key destination for U.S. LNG exports, with 82% of February 2025 shipments heading to the continent. As emissions regulations tighten worldwide, LNG is becoming the fuel of choice for shipowners looking to future-proof their fleets.
Industry coalition SEA-LNG predicts that the number of LNG-fueled vessels will continue to rise, driven by its lower emissions and cost-effectiveness compared to traditional fuels. With the U.S. now fully embracing LNG bunkering, the stage is set for a cleaner, more efficient maritime industry.
Excerpt:
The U.S. is unlocking the potential of LNG bunkering, as regulatory barriers fall and the shipping industry embraces cleaner fuels. Discover how this bold move is reshaping the future of maritime energy and fueling a $1.52 billion market boom.
