The Export-Import Bank of the United States has shown interest to support Pilot LNG’s proposed liquefied natural gas bunkering project in Texas.
Pilot LNG said Thursday it recently received a letter of interest from the bank to provide financing for the development and front end engineering and design of the Galveston LNG Bunker Port (GLBP) project.
On January 19, Horn & Watson Capital Strategies, acting on behalf of the bunkering project, received the letter from US EXIM for financing support of US goods and services associated with the development, it said.
The financing would go through the EXIM medium-term engineering multiplier program, according to Pilot LNG.
The LOI from the US EXIM marks “another positive milestone” in Pilot’s project development, the firm says.
“With the preliminary waterway suitability assessment application for the facility submitted to the US Coast Guard in December 2020, the project continues to advance towards full approval and final investment decision for the development of the GLBP project on Pelican Island, Texas, by late 2021 / early 2022,” it said.
Floating liquefaction tech
To remind, Pilot LNG is a new player founded in mid-2019 by Jonathan Cook and Shaun Davison.
Cook co-founded US floating LNG firm Excelerate Energy and also led the Norway-based shipping company Flex LNG.
The firm 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.
Moreover, the Galveston project’s facility infrastructure includes floating liquefaction technology by Pilot partner, Wison Offshore & Marine.
China’s Wison will design and build the liquefaction unit that will supply LNG to the end-user market in the area.
The non-propelled 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.
Furthermore, the bunkering project includes land-based facilities such as a control room, feed gas compressor and a pipeline.
The total project costs could reach up to $500 million.