The tides are turning for liquefied natural gas (LNG) in the United States. With the Department of Energy (DOE) lifting regulatory barriers, LNG bunkering—the process of fueling ships with LNG—is set to become a game-changer for the maritime industry. This bold move not only streamlines operations but also positions the US as a key player in the global push for cleaner marine fuels.

Breaking Free from Red Tape

In a landmark decision, the DOE has withdrawn its oversight of LNG bunkering under the Natural Gas Act (NGA), effective February 2025.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 the same bureaucratic hurdles in US ports, waters, and even international waters. The move is expected to make LNG bunkering more efficient and accessible, paving the way for widespread adoption.

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.” She emphasized that this shift will help the LNG market grow, particularly in the maritime sector, where demand for cleaner fuels is surging.

A Political and Economic Rollercoaster

The DOE’s decision comes after a tumultuous period for LNG regulations. In December 2024, the government imposed new oversight on JAX LNG, a Florida-based facility supplying LNG to cruise ships, tankers, and cargo vessels. This move was seen as a setback for the industry, especially after the Biden administration’s earlier pause on LNG export approvals to non-free trade agreement nations.

Critics, including the Pelican Institute and Liberty Justice Center, challenged the pause, filing lawsuits to overturn the decision. However, the regulatory landscape remained uncertain—until now. With President Donald Trump back in the White House, the energy sector is witnessing a seismic shift. Trump’s declaration of a national energy emergency and his reversal of the LNG export pause signal a renewed focus on bolstering the role of fossil fuels in the US economy.

The Rise of LNG-Powered Shipping

The global maritime industry is already embracing LNG as a cleaner alternative to traditional marine fuels. According to SEA-LNG’s annual report, the number of LNG-fueled vessels in operation has surged by 33% in just a few months, from 590 in October 2024 to 683 in January 2025.

DNV, a leading classification society, reports that LNG dual-fuel units accounted for 70% of alternative-fueled tonnage ordered in 2024—a significant jump from 43% in 2023. February 2025 alone saw 34 new orders for alternative-fueled ships, with 33 of them being LNG-powered container vessels.

The LNG bunkering sector is also experiencing a boom. DNV’s Alternative Fuels Insight platform highlights a 50% increase in orders for LNG bunker ships, with eight new vessels booked in February 2025. This “parallel growth” underscores the industry’s confidence in LNG as a sustainable marine fuel.

A $1.5 Billion Market on the Horizon

Despite regulatory challenges and market fluctuations, the US LNG bunkering market is poised for explosive growth. Analysts predict it will reach a value of $1.52 billion by 2032, with a compound annual growth rate (CAGR) of 6.8% from 2025 to 2032.

Europe remains a key destination for US LNG exports, with 82% of the 8.35 million tonnes shipped in February 2025 heading to the continent. As stricter emissions regulations take effect globally, the demand for LNG as a marine fuel is expected to skyrocket, solidifying its role in the future of shipping.