Galveston LNG Bunker Port project gains ground

January 31, 2024, by Ajsa Habibic

Galveston LNG Bunker Port (GLBP), a joint venture between U.S. maritime infrastructure company Seapath and Houston-based clean energy solutions provider Pilot LNG, has secured a lease agreement with the City of Texas City for 140 acres of land on Shoal Point in Galveston County.

Front gate view of the proposed Galveston LNG Bunker Terminal. Courtesy of GLBP

The site is adjacent to the Texas Ship Channel and in close proximity to the maritime centers of Texas City, Galveston, and Houston.

The final investment decision (FID) for the project is expected by the second half of 2024, with operations scheduled to commence in late 2026.

Since the project was announced in September 2023, GLBP has assembled a team of advisors and continues its ongoing front-end engineering and design (FEED) development.

The project design includes a two-train and two-tank facility producing 600,000 gallons per day. The first phase of the GLBP project is expected to produce 300,000 gallons per day of LNG for sale into the marine bunker fuel market in the Galveston Bay, and Western Gulf of Mexico region.

GLBP estimates it will file applications with federal and state agencies to permit, construct, and operate the small-scale LNG terminal for marine fuel in early 2024.

Texas City Mayor, Dedrick Johnson, commented on the lease agreement: “Texas City is excited to be partnering with GLBP to develop Shoal Point. Shoal Point and Texas City are an integral part of the maritime economy both in the State of Texas and throughout the U.S. We are very happy to have GLBP in our City and look forward to the jobs and economic opportunities that the project will bring to Texas City.”

Jonathan Cook, CEO of Pilot LNG, stated: “GLBP is fortunate to have a collaborative partner in Texas City, and we believe this is the best possible site in the entire Galveston Bay region for our clean energy facility.

“Its strategic location and proximity to the key ports of Texas City, Galveston, and Houston is critical in ensuring the successful delivery of this LNG marine fuels project. We look forward to more announcements in the coming weeks and months as additional milestones are achieved towards the successful delivery of the project.”