Galveston LNG Files for Construction Permit in Texas

Galveston LNG Bunker Port, LLC (GLBP), a joint-venture between Pilot LNG and Seapath Group, is advancing its natural gas liquefaction facility in the heart of the Galveston Bay/Greater Houston port complex.

GLBP has filed applications with regulators seeking authorization to site, construct and operate the proposed facility at Shoal Point in Texas City, Texas. The GLBP project will be the region’s first dedicated liquefied natural gas (LNG) bunker terminal to provide clean LNG as marine fuel, the company said in a news release.

GLBP said it has filed key regulatory applications with relevant government agencies, including the US Army Corps of Engineers (USACE) for the Clean Water Act and Rivers & Harbors Act, Texas Railroad Commission for the Texas Clean Water Act Section 401 Water Quality Certification, and the United States Coast Guard for Waterway Suitability Assessment.

According to the release, the USACE application for the proposed project includes two natural gas liquefaction trains capable of producing approximately 600,000 gallons per day of LNG, two 3-million-gallon full containment LNG storage tanks, natural gas liquids and refrigerant storage, feed gas pre-treatment facilities, a bunker vessel loading berth, and associated marine and loading facilities.

GLBP is ideally situated to supply the growing Galveston Bay Port Complex fuel and bunker markets. This includes LNG marine fuel deliveries directly to customers in the port complex and surrounding areas, such as the Galveston Offshore Lightering Area, the company said.

“The Galveston LNG Bunker Port project continues to meet its milestones, and we are very excited to announce that the necessary permitting applications have been submitted,” Pilot LNG Chief Development Officer Shaun Davison said. “We are confident that we will meet the rigorous requirements of State & 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 U.S. Gulf Coast region by the end of 2026”.

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

Seapath Group, a subsidiary of the Libra Group, and Pilot LNG signed a project development agreement in September 2023 that provided a framework for the development, technical design, permitting and marketing of the proposed liquefaction project, which is estimated to come online in late 2026.

GLBP reiterated that the final investment decision to proceed with construction is contingent upon completing required commercial agreements, acquiring all necessary permits and approvals, and securing financing commitments.

The global maritime industry is increasingly adopting LNG as a marine fuel to significantly reduce emissions and meet tightening regulations, including IMO 2020, which came into effect January 1, 2020, according to the release.

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