Galveston LNG Bunker Port signs deal to supply e-LNG

Galveston LNG Bunker Port LLC announced it has signed a letter of intent with renewable fuel producer Loa Carbon to develop a supply chain for e-LNG fuel targeting the U.S. Gulf Coast maritime market.

Galveston LNG Bunker Port LLC (GLBP) on Tuesday announced it has signed a letter of intent (LOI) with renewable fuel producer Loa Carbon to develop a supply chain for e-LNG fuel targeting the U.S. Gulf Coast maritime market.

E-LNG (electro-LNG) is liquefied natural gas produced using renewable electricity to generate hydrogen via electrolysis, which is then combined with captured CO₂ to create synthetic methane and liquefied. Unlike conventional LNG, which is derived from fossil natural gas, e-LNG is carbon-neutral and considered a cleaner alternative.

Under the agreement, Loa Carbon will produce renewable e-methane, which will be liquefied by GLBP at its Texas City facility and distributed to LNG-fueled vessels in the Houston-Galveston area. The project is scheduled to begin operations in 2028 and is expected to be the first dedicated marine LNG liquefaction terminal in the region.

The GLBP project is being developed by Pilot LNG and its partner Seapath Group, a Libra Group subsidiary. The facility is located on the Texas City Ship Channel and is positioned to serve major regional ports including Port Houston, the Port of Galveston, and the Port of Texas City.

Loa Carbon plans to co-locate its e-methane production units at the site, enabling direct injection into terminal city gate systems for regulatory compliance with FuelEU requirements.

According to GLBP, Texas City offers key advantages for the project, including access to industrial CO₂ sources and nearby landfills for biogenic CO₂ capture. The state’s low-cost renewable energy market and the federal 45V hydrogen production tax credit are also expected to support competitive green hydrogen production for the e-methane process, the company added.

“This integrated approach provides shipowners a clear pathway to scalable, cost-transparent, ultra-low-carbon fuel without requiring operational changes to their vessels or bunkering procedures,” said Dan Wojno, COO of Loa Carbon.

Jonathan Cook, CEO for Pilot LNG, said, “This partnership with Loa Carbon will enable GLBP to offer low-carbon e-LNG to customers in search of sustainable fuel solutions. GLBP will be the first supplier of LNG bunker fuel to provide e-LNG in North America. The e-LNG supplied to our customers will have one of the lowest Carbon Intensity scores on a well-to-wake basis. By producing LNG at the supply side of the value chain, we eliminate the need for shipping and storage, thereby reducing overall emissions compared to LNG bunker fuel delivered in Europe or Asia. Simply put, partnering with Loa makes perfect sense.”

In May, GLBP secured federal permits to move forward with the construction of its LNG bunkering terminal. The project is being developed in two phases with a total capacity of up to 720,000 gals. per day accompanied by two 3-million-gal. storage tanks.