Pilot LNG LLC and maritime infrastructure firm Seapath are seeking approval to build their proposed liquefied natural gas bunkering project near Galveston, TX, to meet expected rising demand for low-carbon marine fuel on the Gulf Coast.
Galveston LNG Bunker Port LLC, a joint venture formed last year between Pilot LNG and Seapath, has filed an application with the U.S. Army Corps of Engineers to build a 600,000 gallon/day LNG fueling terminal. It also has filed applications with the Railroad Commission of Texas and U.S. Coast Guard.
“We are confident that we will meet the rigorous requirements of state and local permitting authorities to ensure that the project is delivered on time and will meet the ever-growing demand for clean fuel supply in the Galveston Bay and Gulf Coast region by the end of 2026,” Pilot LNG’s Shaun Davison, chief development officer, said.
The project’s design includes two liquefaction trains, two three million gallon LNG storage tanks, natural gas liquids and refrigerant storage, feed gas pre-treatment facilities and a bunker vessel loading berth.
The partners are planning to site the bunkering project adjacent to the Texas City Ship Channel on the Galveston Bay. Being bayside would position the facility in one of the busiest marine corridors in the United States and provide access to ships also headed to the Houston Ship Channel.
Demand for LNG bunker fuel is poised to grow. International regulators have tightened emissions standards, and the maritime industry has increasingly turned to LNG as a fuel source because of its lower emissions profile and cost competitiveness.
“This facility is a critical investment into the resilience of the United States’ maritime infrastructure, and upon construction will immediately provide positive environmental and economic impacts in Texas City, Galveston Bay and the Gulf Coast,” Seapath Group President Joshua Lubarsky said.
The companies disclosed they plan to reach a final investment decision on the project after “completing required commercial agreements, acquiring all necessary permits and approvals, and securing financing commitments.” Pilot awarded a front-end engineering and design contract to Wison Offshore & Marine in 2021.
