Final Construction Permits Issued for First Gulf Coast LNG Bunker Port

The Galveston LNG Bunker Port is set to begin construction following the recent authorization from the U.S. Army Corps of Engineers and a recommendation from the U.S. Coast Guard. This project marks a significant milestone as it will be the first LNG bunker port on the Gulf Coast. Developed by Pilot LNG and Seapath Group, a subsidiary of Libra Group, the project is now moving towards a financial investment decision.

Strategic Location and Capacity Plans

Situated on the Texas City Ship Channel within the Texas City industrial area, the Galveston LNG Bunker Port aims to supply liquefied natural gas (LNG) via fuel barges to the growing fleet of LNG-fueled vessels in the Houston-Galveston region. The port is strategically positioned to serve major ports, including Port Houston, the Port of Galveston, and the Port of Texas City, enhancing the region’s maritime infrastructure.

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The development plan for the terminal is divided into two phases. The first phase will cover a 140-acre site with an initial capacity of 360,000 gallons per day, with product deliveries expected to commence in the second half of 2027. Following this, a second phase will expand the facility, requiring an additional eight to twelve months to complete, ultimately increasing the total capacity to 720,000 gallons per day. This expansion will be supported by the construction of two 3-million-gallon storage tanks.

Josh Lubarsky, President of Seapath Group, expressed confidence in the project, stating, “After several years of challenging and complex work bringing together the engineering, permitting, and third-party supplies for gas and power to the project, we are now comfortably ahead in the marketplace to be the first dedicated LNG marine fuels supplier in the U.S. Gulf.” The total investment for the project is projected to exceed $300 million, with necessary authorizations already secured from Texas earlier this year. Currently, LNG is being supplied by JAX LNG in Jacksonville, Florida, which has a capacity of 360,000 gallons per day and serves ports in South Florida as well.