Client Alert: PHMSA’s Final Rule Allowing Transport of LNG by Railcar

On July 24, the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) published a final rule authorizing the transportation of “methane, refrigerated liquid,” commonly known as liquefied natural gas (“LNG”) by rail tank car. This Client Alert provides background on the current infrastructure for transporting LNG, addresses the key provisions in PHMSA’s Final Rule, and discusses the potential implications the Final Rule has for gas producers, railroads, and railcar manufacturers.