Galveston LNG Bunker Port Partners with TOTE Services for LNG Bunkering Fleet
Texas-based Galveston LNG Bunker Port (GLBP) has announced a strategic partnership with TOTE Services to develop a fleet of dedicated Jones Act LNG bunker vessels for the U.S. Gulf Coast. This collaboration marks a significant step in the establishment of the first dedicated LNG bunkering terminal in the region. Under a newly signed heads of agreement, GLBP and TOTE Services will jointly design, construct, and operate LNG bunker vessels or barges that will serve GLBP’s planned small-scale LNG bunkering facility.
The partnership aims to deploy a fleet of U.S.-built, U.S.-owned, and U.S.-crewed bunker vessels. These vessels will deliver LNG to customers throughout the Houston-Galveston port complex, an area experiencing increasing demand for LNG as a marine fuel. A key aspect of this project is its compliance with the Jones Act, which mandates that LNG transported in U.S. coastwise trade must be carried on domestic vessels. The agreement outlines a pathway toward a charter contract for the first LNG bunker vessel, which is targeted for deployment by mid-2026.
Project Timeline and Future Fuel Flexibility
GLBP has expressed that this partnership enhances its capacity to move toward full project execution as market demand for LNG grows. The companies have also emphasized the flexibility of the bunker fleet, which is designed to accommodate future fuels, including bio-LNG and e-LNG as drop-in options. Jonathan Cook of GLBP highlighted the importance of TOTE Services in this venture, stating, “Securing TOTE Services as our Jones Act partner is a defining milestone for the project and the U.S. LNG bunkering industry.” Cook noted TOTE’s extensive experience in LNG ship operations and bunkering as a valuable asset to the project.
TOTE Services, which currently operates four LNG-powered cargo ships and two LNG bunker vessels, has completed over 850 LNG bunkering operations. The company is recognized for its role in constructing the world’s first LNG-fueled container ships and North America’s first LNG bunker barge. TOTE Services President Jeff Dixon remarked that the agreement aligns with the company’s ongoing commitment to advancing practical and scalable LNG solutions that bolster the U.S. maritime industry.
GLBP is targeting a final investment decision in 2026, contingent upon the anticipated receipt of federal and state permits in 2025. The project has already secured essential engineering, procurement, and construction agreements and is actively engaging in customer offtake discussions.
Facility Development and Capacity Plans
The Galveston LNG Bunker Port terminal is currently under development at Shoal Point in Texas City and is projected to commence operations in 2029. The facility will be constructed in two phases, with a total capacity of up to 720,000 gallons per day and two storage tanks, each holding 3 million gallons. This strategic location is poised to supply LNG bunkers across the Houston-Galveston port complex, including offshore lightering areas.
As the demand for LNG as a marine fuel continues to rise, the collaboration between GLBP and TOTE Services represents a pivotal advancement in the U.S. LNG bunkering landscape. The successful execution of this project could significantly enhance the operational capabilities of the maritime industry in the Gulf Coast region, paving the way for a more sustainable future in marine fuel solutions.
