Plan for LNG Bunkering Terminal in Galveston Bay Taking Shape

Illustration courtesy Pilot LNG

Texas-based LNG supplier Pilot LNG has announced a partnership with GAC Bunker Fuels to potentially bring a dedicated LNG bunker terminal to Galveston Bay in Texas.

The two companies have executed a Heads of Agreement (HOA) for the supply of LNG marine fuel from the proposed Galveston LNG Bunker Port, which will be the region’s first dedicated LNG bunker terminal.

GAC Bunker Fuels is the world’s only bunkering company with an integrated ISO 9001, 14001, and 45001 certification for bunker procurement, which also covers LNG as a marine fuel.

Liquefied natural gas is touted as a cleaner-burning fuel that can help the shipping industry reduce emissions to meet tightening global regulations, including the IMO sulphur limit in force since January 2020.

Pilot says the HOA demonstrates the growing market interest in the fuel and outlines the terms of a partnership. Under the agreement, Pilot will provide LNG marine fuel to GAC on a Delivered Ex-Ship (DES) basis for its customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City, as well as Galveston Offshore Lightering Area, on a long-term basis.

“The Galveston LNG Bunker Port will provide the LNG to supply GAC’s growing market for cleaner marine fuel, particularly as its customers seek economic ways to comply with tightening emissions regulations, including IMO 2020,” says Pilot Chief Executive, Jonathan Cook. “The opportunity to work with such a strong global player like GAC is a very exciting step forward for Pilot and the Galveston project.”

The HOA with GAC follows Pilot’s announcement in July that it had filed regulatory applications with the US Army Corps of Engineers (USACE) and other relevant regulatory agencies, paving the way for a Final Investment Decision (FID) in 2021 and allow operations to begin in late 2024.

“We have a proven track record of more than three decades supplying quality marine fuels to the shipping sector, and we continually adapt to meet our customers’ evolving needs,” added Nicholas Browne, GAC Bunker Fuels’ Global Director. “This agreement with Pilot will allow us to grow our portfolio of alternative fuels, with LNG as the cleanest and most cost-effective way for shippers to meet compliance.”

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