Gas Supply Deal Signed for Galveston LNG Bunker Port

Galveston LNG Bunker Port (GLBP) announced a gas supply agreement (GSA) with Energy Transfer’s Houston Pipeline Company (HPL), in a new milestone for the development of the region’s first dedicated liquefied natural gas (LNG) bunker terminal.

The newly signed agreement outlines the terms for the supply of natural gas and the construction of additional pipeline facilities needed for efficient delivery to the GLBP facility on Shoal Point in Texas City, Texas. This agreement is crucial for GLBP to provide LNG marine fuel to a broad range of customers within the Galveston Bay Port complex, including the ports of Houston, Galveston, and Texas City, as well as the Galveston Offshore Lightering Areas.

“Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility,” said Jonathan Cook, CEO of Pilot LNG, on behalf of GLBP. “We are proud of the relationship we have with HPL and are excited about the opportunities we have to work closely with them in supporting the strengthening of U.S. energy infrastructure, and the maritime industries decarbonization journey.”

As the maritime industry seeks ways to reduce its environmental impacts, the adoption of cleaner-burning LNG as a marine fuel continues to gain traction, especially among cruise ships, roll-on/roll-off (RoRo) car carriers and container shipping industries, all of which have significant fuel needs and are prominent in the Galveston Bay port complex. The region currently sees approximately 380 cruise ship port calls annually, with a new cruise terminal recently announced. Additionally, over 10,000 deep-draft vessel calls occur each year in the Galveston Bay port complex.

A joint venture between Pilot LNG and Seapath, the GLBP terminal is being developed in a phased approach with a total expected capacity of 600,000 gallons per day, divided between Phases 1 and 2, each with a capacity of 300,000 gallons per day. Each phase will be accompanied by a 3-million-gallon storage tank.

 The project is progressing toward a final investment decision (FID) and is anticipated to commence operations by the first half of 2027.