The Galveston Wharves Board of Trustees has approved a lease and development agreement with Power LNG LLC, which plans to develop a small-scale, modular liquefied natural gas (LNG) production, storage and fuel bunkering facility on Pelican Island.
The board approved the agreement on Oct. 8. The 30-acre greenfield development will be located on the east side of an approximately 82-acre, port-owned tract on the deep-water Galveston Harbor.
Power LNG would also build an underground natural gas pipeline to provide feedstock to the facility, a 3-million-gallon LNG storage tank, and a shore-to-ship pier to fuel both ships and bunker vessels.
Power LNG’s strategic partners and customers are expected to coordinate LNG bunkering operations using appropriately qualified vessels operating in accordance with U.S. Coast Guard and applicable Jones Act requirements. These vessels may provide LNG fuel to ships calling at the Port of Galveston and other locations in the Galveston, Houston and Texas City ship channels.
The facility is projected to begin commercial production in fourth quarter 2028 following completion of required approvals and agreements. The port agreement outlines requirements related to government permits and approvals, project financing, rent and other charges, as well as commercial and operating agreements needed to advance the development.
Rodger Rees, Galveston Wharves port director and CEO, “This agreement paves the way for the Port of Galveston to play a leading role in providing cleaner marine fuels to the region. The project will create jobs, bring more LNG-powered ships and contribute to improved air quality. Pelican Island, with its deep-water harbor, industrial operations and available acreage, is the ideal location for an LNG facility.”
Rees said the project also positions the port to serve growing demand for LNG as a marine fuel.
“As more LNG-powered ships are built, demand for LNG marine fuel is reaching a tipping point,” Rees said. “This facility will give Galveston an opportunity to support this growing market while further diversifying our port’s operations.”
Austin Terry, Power LNG CEO, added, “We are honored to partner with the Port of Galveston in developing a fully integrated LNG fueling solution, including liquefaction, storage, bunkering, vessel loading, and export capabilities. The growth of marine LNG creates significant economic opportunity for the Galveston/Houston region while supporting the evolving needs of next-generation vessels and global trade.”
As part of anticipated long-term development, the port and Power LNG plan to negotiate agreements for LNG and/or ISO tank container loading operations at a future port-owned dock adjacent to the leased property.
