First Gulf Coast LNG Bunker Fueling Facility Secures Final Permits for 2027 Start

HOUSTON – The Galveston LNG Bunker Port (GLBP) has cleared its final regulatory hurdles after securing crucial permits from the U.S. Army Corps of Engineers and U.S. Coast Guard, setting the stage to become the first dedicated LNG marine bunker port on the U.S. Gulf Coast.

The project received both Section 408 and 404/10 authorizations from the U.S. Army Corps of Engineers under the Clean Water Act, along with the U.S. Coast Guard’s Captain of the Port Letter of Recommendation for its Waterway Suitability Assessment. These approvals follow earlier authorizations from the Texas Railroad Commission for Water Quality Certification and the Texas Commission on Environmental Quality for air permits.

Located strategically on the Texas City Ship Channel, the facility will serve LNG-fueled vessels in the Houston-Galveston region through fuel barge operations. The terminal’s position provides optimal access to major maritime hubs including Port Houston, the Port of Galveston, and the Port of Texas City.

The project, a joint venture between Pilot LNG and Seapath Group, anticipates reaching its final investment decision by mid-2025. The facility is being developed in two phases and will feature a total capacity of 720,000 gallons per day, supported by two 3-million-gallon storage tanks.

“This is a crucial milestone for our project,” said Shaun Davison, Chief Development Officer of Pilot LNG. “We are in the very advantageous position of being the only permitted LNG bunker project in the region.”

“We are now comfortably ahead in the marketplace to be the first dedicated LNG marine fuels supplier in the U.S. Gulf,” added Josh Lubarsky, President of Seapath Group. “We have made a significant financial commitment to this project and have positioned GLBP to be the foremost clean fuel supply hub in the Galveston Bay/Gulf region.”

The facility will serve the growing demand for LNG as a marine fuel, with operations projected to commence in the second half of 2027. Services will include LNG marine fuel deliveries to customers in the port complex and surrounding areas, including the Galveston Offshore Lightering Area.

Pilot LNG, one of the project developers, specializes in developing and operating LNG import and bunkering terminals, focusing on meeting the increasing natural gas demand for the expanding fleet of LNG-fueled vessels. Their partner, Seapath, operates as a maritime subsidiary of Libra Group, providing maritime asset financing and project financing services for maritime commercial, industrial, and infrastructure projects.

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