DOE Modifies Order for JAX LNG, Allows Ship-to-Ship Fuel Transfer
The prior administration’s order issued to JAX LNG asserted new oversight for the use of LNG to power marine vessels, also known as LNG bunkering.
The Department of Energy (DOE) issued an Order on Rehearing to JAX LNG, eliminating a previous barrier and allowing the company to use LNG to conduct bunkering and ship-to-ship fuel transfer operations. The new order removes LNG bunkering and transfer restrictions in U.S. ports, waters, and international zones, but still classifies ship-to-ship transfers in foreign waters and ports as an “export” operation.
The prior administration’s order, issued in December 2024, asserted stricter oversight on the use of LNG to power marine vessels, with the modified order withdrawing the DOE’s jurisdiction under the Natural Gas Act. JAX LNG is still authorized to export LNG via containers that satisfy the International Organization for Standardization requirements.
“Today’s action is a significant step in reducing regulatory burdens and helping this important segment of the LNG market continue to grow,” said Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management.
JAX LNG fueling a bunker barge; image credit: Jacksonville Port Authority
About JAX LNG & Trends
JAX LNG is a small-scale coastal facility that delivers LNG to fuel marine vessels, including cruise ships, car carriers, petroleum tankers, container ships, and more. It is headquartered at Dames Point in Jacksonville, FL.
In recent years, marine vessels have been increasingly fueled by LNG and demand is expected to rise, driven by stringent emissions regulations for maritime shipping. According to the International Energy Agency’s Quarterly Gas Report released in January 2025, the number of LNG-fueled ships is expected to nearly double to more than 1,200 vessels by 2028.
More DOE News
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The Heartland Hydrogen Hub contains planned sites across Minnesota, Montana, North Dakota, South Dakota, and Wisconsin—a region recognized for agriculture, mineral mining, and energy production. MACH2’s clean hydrogen will be used in industrial applications, such as power generation, replacement fuel for process heaters, and heavy-duty transportation. This includes multiple refueling stations to serve sanitation trash trucks, street sweepers, cargo handling equipment, and fuel cell-equipped electric buses.
