Liquified natural gas (LNG) is natural gas that has been cooled to about – 260°F (- 163 °C) to a liquid 600 times denser than its gaseous state. LNG facilities are rapidly increasing in the United States, bringing with them increased risk of incidents, with any safety failures falling heavily on nearby communities. Yet these facilities are still governed by regulations written decades ago.
A 2022 explosion at the Freeport LNG Terminal in Houston, Texas, which created a 450-foot fireball felt miles away, heightened concerns about the safety of LNG and how well LNG facilities are regulated. In Freeport, a pipe valve was blocked for days, resulting in a buildup of gas that exploded when ignited. Communities near the facility have expressed that they still do not have adequate information regarding the risk and safety of LNG.
Among the most serious risks associated with LNG leaks is the potential for a flammable vapor cloud. When liquified natural gas escapes, it quickly warms and vaporizes into a dense cloud of methane gas that initially hugs the ground. While the cloud tends to disperse rapidly into the atmosphere, during its initial window, it presents a significant hazard: if the vapor encounters any ignition source, such as a spark, flame, or hot surface, it can explode.
Unlike other industrial facilities, LNG facility operators are not required to report most safety risks to the public. Many rules governing LNG safety remain outdated and date back to the 1980s, an era when LNG was primarily used as a backup fuel for power plants. These regulations did not anticipate the scale of today’s LNG industry and its impacts on nearby communities. The division of oversight among PHMSA, FERC, and the Coast Guard complicates efforts to modernize regulations in step with the industry’s rapid growth and to provide communities with clear safety information.
In May, PHMSA reopened the rulemaking process to modernize LNG regulations. However, instead of prioritizing safety and acknowledging the evolving landscape of LNG, the agency asked stakeholders how it could make its rules “deregulatory” and reduce costs for the industry. This move raises serious doubts about whether the process will deliver stronger protections for communities.
PHMSA’s rulemaking process began in 2016 and still has no clear end in sight. Even after a draft rule is released, finalizing new standards can take years. Meanwhile, new export facilities continue to be built. Five new terminals are already under construction, and more await approval. As of right now, all of these terminals will operate under regulations written 45 years ago,
The continued delay in updating LNG regulations illustrates the gap between industry growth and public protection. Closing that gap will require stronger oversight, greater transparency, and a commitment to prioritizing safety over profits.
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