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1 1 (November 18, 2019)

handle is hein.crs/govbbvu0001 and id is 1 raw text is: Liquefied Natural Gas by Rail: Policy Issues November 18, 2019 On October 24, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), published a proposed rule to authorize the transportation of liquefied natural gas (LNG) in rail tank cars. This publication was the latest federal action intended to provide greater flexibility in the modes of transportation of LNG to serve domestic and export markets. The proposed rule could conflict with legislation approved by the House of Representatives earlier this year. Natural gas cooled below -2600 F at normal atmospheric conditions condenses into a liquid with 1/600th of its gaseous volume. In this form, it can be economically transported in insulated tanks. When LNG is warmed it regasifies and is used the same way as natural gas supplied by pipeline. Like other gaseous or vaporized fuels, natural gas is combustible, so an uncontrolled release of LNG poses a risk of fire or, in confined spaces, explosion. Due to its low temperature, LNG also could injure people or damage facilities through direct contact. Partly because of these safety risks, LNG shipment and the development of related facilities have been controversial in some communities. Virtual Pipelines Domestic transportation of natural gas occurs mainly by pipeline. However, not all parts of the United States have sufficient pipeline capacity to meet expected growth in demand. Furthermore, proposed pipelines in New England, New York, and the Mid-Atlantic have encountered legal and regulatory challenges. These challenges have prompted proposals to ship LNG by rail to markets with constrained pipeline capacity. The Federal Energy Regulatory Commission has determined that such virtual pipelines are not an economically practical alternative to a major pipeline project based on the number of ... rail cars that would be needed to transport the project volumes and the facilities, time, and cost necessary to process and deliver these volumes. Nonetheless, some in the energy sector believe LNG by rail may be economic in specific markets or at specific times, such as peak heating season in the Northeast. Consequently, certain natural gas market participants and trade groups assert LNG shipment by rail presents a growing opportunit. LNG has been shipped between U.S. and overseas ports in large marine vessels for over 60 years. LNG also has been transported domestically by road in specialized tanker trucks since the 1970s. However, domestic shipment of LNG by rail is relatively new. Federal Hazardous Materials Regulations prohibit rail shipment of LNG except by PHMSA special permiit or with FRA approval. The FRA granted the first Congressional Research Service https://crsreports.congress.gov IN11202 CRS INSIGHT Prepared for Members and C ornm tees of C ongress -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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