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The partners said in a statement Galveston LNG Bunker Port (GLBP) had entered into a gas supply agreement with Energy Transfer’s Houston Pipeline (HPL).
According to the statement, the two companies have executed agreements, which outline the gas supply and additional pipeline facilities required for the delivery of natural gas to the GLBP facility.
Also, 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.
“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 ensure the safe operation and delivery of supply to the facility,” said Jonathan Cook on behalf of GLBP.
Operations expected to start in H2 2027
The partners said the project is currently under development toward a final investment decision (FID).
However, they did not say when they expect FID.
The project is expected to be operational by the first half of 2027, the partners said.
Pilot and Seapath previously said they anticipate announcing FID details of the GLBP project by the second half of 2024, with operations starting in late 2026.
Earlier this year, the partners filed applications with the United States Army Corps of Engineers seeking authorization to build and operate their planned LNG bunkering facility in Galveston.
Pilot LNG and Seapath said in January that they signed a lease agreement with the City of Texas City for 140 acres of land on Shoal Point in Galveston County.
The partners claim the GLBP project will be the region’s first dedicated LNG bunker terminal to provide LNG as marine fuel.
Among the industries adopting LNG as a marine fuel, the cruise ship, RoRo car carriers, and containerized shipping industries are particularly notable, both due to their significant bunker requirements as well as their prominent involvement in the Galveston Bay port complex, the partners said.
Currently, cruise ships already make about 380 port calls each year at the three existing
cruise terminals in Galveston, with a 4th terminal recently announced and starting construction.
In addition, there are over 10,000 deep draft vessel calls annually in the Galveston Bay port
complex, the partners said.
Mexico project
Besides this facility, Houston-based Pilot LNG is joining forces with GFI LNG to build a small-scale LNG terminal in Salina Cruz, Mexico.
The Salina Cruz LNG JV will develop, construct, and operate an LNG bunkering and
transshipment terminal.
At full build-out, the facility is anticipated to produce 600,000 gallons of LNG per day, or roughly 0.34 million metric tonnes per annum.
The partners anticipate operations to start in mid-to-late 2027.
Jonathan Cook and Shaun Davison founded Pilot LNG in mid-2019. Prior to that, Cook co-founded US FSRU player Excelerate Energy and also led the Norwegian shipping firm Flex LNG.
Pilot LNG was previously developing the $500 million Galveston LNG bunkering project with floating liquefaction technology developed by China’s Wison.