Galveston LNG Bunker Port Aims to Power Clean Shipping by 2027

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  • GLBP partners with HPL for natural gas supply to Galveston LNG Bunker Port project.
  • LNG adoption to support decarbonization in the cruise, RoRo, and container shipping sectors.
  • GLBP project expected to be operational by 2027, serving key Texas ports.

Galveston LNG Bunker Port, LLC (GLBP) reports that it has signed a Gas Supply Agreement (GSA) with Energy Transfer’s Houston Pipeline Company (HPL) for the delivery of natural gas to the GLBP terminal in Texas City, Texas. This partnership establishes the groundwork for providing LNG as a marine fuel in the region.

Texas City’s First LNG Bunker Terminal

GLBP is set to develop the first dedicated LNG bunker terminal in the Texas City region. The agreement with HPL outlines the gas supply and pipeline facilities required to ensure smooth natural gas delivery to the GLBP terminal.

This marks a significant step toward supporting cleaner marine fuel in the Galveston Bay Port complex.

Long-Term LNG Supply for Texas Ports

Through this GSA, GLBP will provide LNG marine fuel to key ports in the Galveston Bay Port complex, which includes the ports of Houston, Galveston, and Texas City.

This agreement ensures a long-term supply of clean fuel for these ports and the Galveston Offshore Lightering Areas.

“Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility,” said Jonathan Cook on behalf of GLBP.

“We are proud of the relationship we have with HPL and are excited about the opportunities we have to work closely with them in supporting the strengthening of US energy infrastructure, and the maritime industries decarbonization journey.”

LNG as a Marine Fuel for Key Sectors

The adoption of LNG as a marine fuel is gaining traction, particularly in industries with high bunker fuel requirements like cruise ships, Roll on-Roll off (RoRo) car carriers, and containerized shipping.

These sectors are key players in the Galveston Bay port complex. GLBP aims to serve their growing demand for cleaner fuel.

Cruise Ship Demand for LNG Fuel

The cruise industry is a significant consumer of marine fuel, with around 380 port calls made each year at Galveston’s existing three terminals.

With a fourth terminal under construction, GLBP’s LNG supply will be vital to meeting the growing fuel demand.

Deep Draft Vessels and LNG Fueling

In addition to cruise ships, over 10,000 deep draft vessels call at the Galveston Bay port complex annually. GLBP and HPL’s efforts will help these vessels switch to affordable, cleaner LNG fuel, supporting the maritime industry’s environmental goals.

The Galveston LNG Bunker Port project is currently progressing toward a Final Investment Decision (FID). It is expected to become operational by the first half of 2027. This terminal will play a crucial role in decarbonizing the maritime industry in the region.

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Source: GLBP