Galveston LNG Bunker Port and Energy Transfer Ink Gas Supply Deal

by Admin
Galveston LNG Bunker Port Supply Pact

In a significant step toward advancing decarbonization in the maritime sector, Galveston LNG Bunker Port, LLC (GLBP) has announced a key development in its partnership with Energy Transfer’s Houston Pipeline Company (HPL). The two entities have formalized a Gas Supply Agreement (GSA) that marks a crucial milestone for the Galveston LNG Bunker Port project, set to be the first dedicated LNG bunkering facility on the US Gulf Coast.

The agreement, executed by GLBP and HPL, outlines the logistics and infrastructure required for the delivery of natural gas to the GLBP terminal, located in Texas City, Texas. This collaboration signifies a major leap forward in providing a reliable supply of LNG marine fuel to the Galveston Bay Port complex, which includes 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 ensure the safe operation and delivery of supply to the facility,” said Jonathan Cook 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 US energy infrastructure and the maritime industry’s decarbonization journey.”

The partnership between GLBP and HPL is set to provide LNG to key maritime sectors that are increasingly adopting cleaner fuels. Notably, the cruise ship, Roll on-Roll off (RoRo) car carriers, and containerized shipping industries are major consumers of marine fuel and play a significant role in the Galveston Bay port complex.

Currently, cruise ships make approximately 380 port calls each year at the existing cruise terminals in Galveston, with a fourth terminal recently announced and under construction. Additionally, over 10,000 deep-draft vessel calls are recorded annually in the Galveston Bay port complex. The GLBP and HPL partnership aims to meet the growing demand for affordable, clean marine fuel in these critical maritime sectors.

The Galveston LNG Bunker Port project is in the development phase, with plans moving toward a Final Investment Decision (FID). The terminal is anticipated to become operational by the first half of 2027. Once complete, it will have a daily capacity of up to 600,000 gallons and will feature two 3-million-gallon storage tanks. This strategic location will facilitate LNG marine fuel deliveries directly to customers within the Galveston Bay Port complex and its surrounding areas, including the Galveston Offshore Lightering Area.

About Energy Transfer’s Houston Pipeline Company

Houston Pipeline Company, a part of Energy Transfer, specializes in the transportation and delivery of natural gas through an extensive network of pipelines. With a focus on safe and efficient operations, HPL is a key partner in supporting the LNG supply chain and advancing energy infrastructure.

About Galveston LNG Bunker Port

The Galveston LNG Bunker Port (GLBP) project is spearheaded by Pilot LNG, supported by its financial partner, Seapath Group, a subsidiary of the Libra Group. Situated on Shoal Point in Galveston County, Texas, part of the Houston-Galveston port complex, GLBP is set to meet the increasing demand for clean-burning LNG as a marine fuel. The terminal, expected to commence operations in late 2026, will be well-positioned to serve the burgeoning fuel and bunker markets in the Galveston Bay Port complex and beyond.

Source Galveston LNG Bunker Port