LNG bunker port project files for permits to produce fuel for Galveston Bay and Greater Houston port areas

The Galveston LNG Bunker Port project is seeking authorisation to site, construct and operate a proposed small-scale liquefied natural gas production facility on Shoal Point in Texas to provide clean shipping fuel to the Galveston Bay and Greater Houston port area.

Included in the plans are two LNG liquefaction Trains capable of producing around 600,000 gallons per day of LNG.

The LNG production plant for bunkering is a joint venture involving Pilot LNG and Seapath Group, a subsidiary of the Libra Group.

The filing with the state and federal agencies includes a permit required from the United States Army Corps of Engineers (USACE) covering the various developments.

LNG storage

In addition to the liquefaction plant, the Galveston LNG Bunker Port is also seeking approval to build two LNG storage tanks each with 3 million gallons of capacity, feed-gas pre-treatment equipment, a bunkering vessel loading berth and associated marine and loading facilities.

“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 US Gulf Coast region by the end of 2026,” said Shaun Davison, Chief Development Officer of Pilot LNG.

Pilot LNG and Seapath said they signed a project development agreement in September of 2023 that provides a framework for the development, technical design, permitting and marketing of the proposed liquefaction project.

“Our experience in developing, building, and operating energy infrastructure will help us with this much-needed facility,” said Joshua Lubarsky, President of Seapath.

“This facility is a critical investment into the resilience of US maritime infrastructure, and upon construction will immediately provide positive environmental and economic impacts in Texas City, Galveston,” stated Lubarsky.

Pilot LNG is the frontline developer while it will receive financial support from partner Seapath.

Both companies said that the bunkering port would be “ideally situated” to supply the growing Galveston Bay Port Complex fuel and bunkering markets.

“This includes LNG marine fuel deliveries directly to customers in the port complex and surrounding areas, such as the Galveston Offshore Lightering Area,” they added.

Other permits required include those from the Texas Railroad Commission (TRRC) for the Texas Clean Water Act (CWA) and the United States Coast Guard for a Waterway Suitability Assessment.