Galveston LNG Bunker Port Secures Commercial Commitment For LNG Fuel Supply

Galveston LNG Bunker Port, LLC (GLBP), a Texas-based developer of the first dedicated LNG bunkering facility on the US Gulf Coast, has signed a commercial commitment with an international shipping company to supply LNG bunker fuel in Galveston Bay. The agreement highlights growing demand for LNG as a marine fuel and strengthens the outlook for US-based LNG bunkering infrastructure.

Commercial Agreement and Project Timeline

The heads of agreement covers the delivery of LNG as a marine fuel via a Jones Act–compliant LNG bunker vessel, with supply scheduled to begin in 2029. GLBP’s terminal, expected to commence 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.

This agreement marks a key commercial milestone for GLBP and builds on recent progress, including securing all major state and federal permits and selecting an EPC contractor. Together, these developments demonstrate the project’s readiness and credibility to deliver critical LNG bunkering infrastructure and enhance US maritime fuel resiliency.

Rising LNG Demand and Infrastructure Gap

Demand for LNG bunkering in the US continues to grow rapidly. According to DNV, around 781 dual-fuel vessels are currently in operation worldwide, with the global fleet expected to reach approximately 1,400 ships by 2030. However, analysts warn that LNG bunkering infrastructure may not expand fast enough to meet this growth, creating potential supply shortages.

Vessels entering service between 2027 and 2029 could face limited LNG availability unless infrastructure commitments are secured by early 2026. This concern was a major focus at the recent North American LNG Bunkering Summit in Virginia Beach, where industry stakeholders highlighted the urgent need for new bunkering capacity.

GLBP’s commercial commitment signals strong market confidence in LNG as a transition fuel for shipping and positions Galveston Bay as a key LNG bunkering hub on the US Gulf Coast. With negotiations ongoing for additional capacity in the container and car carrier segments, and a planned full buildout capacity of up to 720,000 gallons per day supported by two 3-million-gallon storage tanks, the project is set to play a critical role in meeting future LNG bunker demand