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Trump proposal to ship LNG by rail draws ire of state AGs

|About: The United States Natural G... (UNG)|By: , SA News Editor

Attorneys general from 16 states have come out against a Trump administration proposal to ship liquefied natural gas (NYSEARCA:UNG) by rail, arguing that potential leaks from the shipments pose risks of explosions.

AGs from California, New York and other states have filed comments urging the Department of Transportation to pull the proposal pending the completion of safety studies and the development of an environmental impact statement.

The American Association of Railroads, which supports shipping LNG by rail, says railroads move more than 99.99% of hazardous materials to their destination without releases caused by an incident, and the industry has worked to strengthen tank car standards.

New Fortress Energy (NASDAQ:NFE) hopes to liquefy gas from Pennsylvania and send it by rail to a not-yet-built terminal on the Delaware River for shipping to global markets, via a route that could take LNG through Philadelphia and Camden, N.J.

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