Seatrade-Maritime: US moves to streamline deepwater port licensing

Published by Seatrade-Maritime

The US Maritime Administration (MARAD) has taken a significant step toward overhauling federal licensing for offshore energy export terminals with the recent submission of a proposed rule to the White House for executive review.

The Notice of Proposed Rulemaking (NPRM), “Processing Applications and Licensing Deepwater Ports”, which arrived at the Office of Management and Budget on 28 August, would update regulations that make up the governing framework of the Deepwater Port Act of 1974. It would also codify a policy push announced earlier this year by US Transportation Secretary Sean Duffy to eliminate administrative delays for offshore infrastructure.

Duffy revealed in January that MARAD would take over primary oversight of National Environmental Policy Act and environmental compliance reviews from the US Coast Guard. Under the restructured alignment, MARAD now leads environmental processing while the Coast Guard acts as a cooperating agency overseeing facility safety, design, and marine operations.

“The Deepwater Port Program is a key pillar of President Trump’s energy dominance strategy,” Duffy stated at the time. “With this change, we’ll soon accelerate project approvals so the nation can safely utilize more of its abundant natural resources, create more high paying jobs, and lower energy costs for American families.”

The regulatory refresh comes as energy developers navigate multi-billion-dollar capital commitments for offshore infrastructure. Floating liquefied natural gas (FLNG) and crude oil export terminals rely on deepwater moorings to service Very Large Crude Carriers and massive gas carriers, bypassing draught constraints at congested onshore port terminals.

Obtaining a license through the Deepwater Port Act rules has historically taken years. According to the Trump administration, only 31 applications have been filed since 1975 – including 11 for crude oil and liquefied natural gas (LNG) exports – with projects often facing extended processing time.

Capital-intensive projects such as Delfin Midstream’s $5 billion FLNG terminal off Louisiana – the first offshore LNG export project in the U.S., or Enterprise Products Partners’ Sea Port Oil Terminal (estimated at $3 billion) off Texas – the first US crude oil deepwater port approved in nearly 50 years – highlight the financial stakes tied to review schedules.

The draft is currently being vetted at OMB’s Office of Information and Regulatory Affairs. Following an interagency review process, which could take up to 90 days, MARAD will publish the proposed rule in the Federal Register, opening a formal public comment period for terminal developers and maritime operators.