Galveston LNG Bunker Port, LLC (GLBP) announced the signing of a commercial commitment with an unnamed international shipping company on Tuesday.
The heads of agreement covers LNG as a marine fuel to be delivered via Jones Act–compliant LNG bunker vessel beginning in 2029.
GLBP’s forthcoming terminal, scheduled to begin operations in late 2028, will supply LNG by barge to vessels calling at Port Houston, the Port of Galveston, and the Port of Texas City.
The LNG bunkering terminal developer noted that this commercial milestone builds on the recent announcements that the GLBP project has secured all necessary major state and federal permits for construction and has selected NV5 Global as its EPC contractor.
GBLP said that demand for new US LNG bunker supply continues to grow.
DNV recently said that there are now 833 LNG-powered ships in operation and 624 LNG-fueled vessels on order.
However, many industry analysts warn that existing LNG‑bunkering infrastructure will not keep pace with the orderbook, risking a supply shortage over the same period.
Vessels coming in service in 2027, 2028, and even in 2029 may not be able to find LNG supply unless commitments are made in early 2026 to accommodate the necessary infrastructure build-out, GBLP said.
“Several international shipping firms”
GLBP said that is currently in negotiations with “several international shipping companies” in the container and car carrier segments for the remaining volumes of the terminal’s initial phase.
At full buildout, the terminal will have a total capacity of up to 720,000 gallons per day accompanied by two 3-million-gallon storage tanks.
GLBP did not provide further info regarding a final investment decision, or when it plans to start construction.
Last year, Pilot LNG and Seapath filed applications with the United States Army Corps of Engineers seeking authorization to build and operate their planned LNG bunkering facility in Galveston.
The partners said in January 2024 that they signed a lease agreement with the City of Texas City for 140 acres of land on Shoal Point in Galveston County.
In addition, Pilot LNG and Seapath secured gas supply for their planned LNG bunkering facility with GLBP entering into a gas supply agreement with Energy Transfer’s Houston Pipeline (HPL).
This gas supply agreement supports GLBP in providing LNG marine fuel to customers in the Galveston Bay Port complex, including the ports of Houston, Galveston, and Texas City, as well as Galveston Offshore Lightering Areas, on a long-term basis.
Earlier this year, Pilot and Seapath signed a deal to supply LNG to London-based Dunmura from their planned LNG bunkering facility in Galveston.