Wison scores FEED contract for Pilot LNG’s bunkering project in Texas

Texas-based Pilot LNG, the developer of the Galveston LNG bunkering project, said Thursday it awarded the front-end engineering and design contract for the project’s floating unit to China’s Wison Offshore & Marine.

In addition to the FEED award, Pilot said in a statement that Wison would also become a minority equity shareholder in the company but it did not reveal further details.

The contract further “solidifies” the partnership between the duo first revealed in July 2020, it said.

“It was imperative that the company selected to carry out the FEED works for the Galveston LNG Bunker Port have an excellent track record of successfully engineering and executing floating LNG projects,” Pilot chief executive Jonathan Cook, said.

“Our selection of Wison is in recognition of their unparalleled expertise and commitment to delivering safe, highly competitive floating LNG projects,” he said.

Operations could start in 2025

To remind, Cook and Shaun Davison founded Pilot in mid-2019.

Prior to that, Cook co-founded US floating LNG firm Excelerate Energy and also led the Norway-based shipping company Flex LNG.

Pilot revealed the US bunkering project last year and subsequently also signed a deal with a unit of GAC. This deal prepares the ground for Pilot to provide LNG marine fuel to GAC on a delivered ex-ship basis for its customers in the Galveston Bay Port complex on a long-term basis.

This includes the ports of Houston, Galveston and Texas City, as well as Galveston offshore lightering area.

In addition, the Export-Import Bank of the United States has also shown interest to support Pilot’s proposed bunkering project in Texas.

The Galveston project’s facility infrastructure includes floating liquefaction technology by Wison but also land-based facilities such as a control room, feed gas compressor and a pipeline.

Furthermore, the non-propelled liquefaction unit will be 148 meters long with a capacity of around 0.5 mtpa. It will also feature a C type tank with a storage capacity of 18,000 cbm.

While LNG bunkering infrastructure has been rapidly developing overseas and in certain parts of the US, Pilot’s Galveston project would be the first of its kind for the region.

The total project costs could reach up to $500 million.

Pilot expects to take a final investment decision on the project in the first half of 2022 and to launch operations in the first half of 2025.

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