Galveston LNG aims to become first to provide e-LNG in North America

Texas’ Galveston LNG Bunker Port (GLBP) and New York-headquartered Loa Carbon have signed a letter of intent (LoI) to supply e-LNG bunkering fuel to ships calling at the Houston-Galveston port complex on the US Gulf coast.

Scheduled to begin operations in 2028, the facility is intended to provide LNG fuel to vessels calling at Port Houston, Port of Galveston and Port of Texas City on the US Gulf coast.

Climate technology company Loa Carbon creates renewable synthetic methane from captured CO2 and green hydrogen, and the company plans to provide renewable e-methane directly to GLBP for liquefaction by locating some of its e-LNG production modules on the GLBP site. The location of the modules allows easier compliance with European Union and International Maritime Organization emissions regulations.

"Co-locating Loa Carbon’s e-methane production modules on the Galveston LNG Bunker Port site enables a direct injection into the terminal city gate systems for FuelEU compliance, ensuring seamless blending with conventional LNG, and creating a one-stop fuelling for shipowners requiring both volume and carbon compliance," GLBP said.

According to GLBP, its facility’s Texas City location allows the partnership to take advantage of supplies for "cost-competitive e-methane production" including CO2 feedstock available from Texas City’s chemical and refinery infrastructure. The sites generate and capture large amounts of CO2 "for future scale-up potential" for GLBP,  and it has a supply of biogenic CO2 from nearby landfills, the companies said.

Loa’s heat-exchange reactor converts green hydrogen and biogenic CO2 into a drop-in fuel, and the companies said their GLBP e-LNG project is projected to come online in 2028, becoming the first dedicated LNG liquefaction facility for marine bunkering on the US Gulf Coast.

"GLBP will be the first supplier of LNG bunker fuel to provide e-LNG in North America. The e-LNG supplied to our customers will have one of the lowest carbon intensity scores on a well-to-wake basis. By producing LNG at the supply side of the value chain, we eliminate the need for shipping and storage, thereby reducing overall emissions compared with LNG bunker fuel delivered in Europe or Asia," Pilot LNG chief executive Jonathan Cook said.

The Galveston LNG Bunker Port project is being developed by Pilot LNG and its partner Seapath Group, a Libra Group subsidiary.