US Gulf LNG bunkering project signs agreement

Development at Galveston LNG Bunker Port moved beyond permitting and design with the signing of a commercial heads of agreement for LNG bunker fuel in Galveston Bay.

Galveston LNG Bunker Port (GLBP) announced it has executed a heads of agreement with an international shipping company for LNG as a marine fuel, to be delivered by a Jones Act-compliant LNG bunker vessel from 2029.

According to the company, this agreement “covers LNG as a marine fuel to be delivered via a Jones Act–compliant LNG bunker vessel beginning in 2029.”

GLBP stated, “With this milestone, GLBP reinforces its position as the most advanced, most certain, and fastest-to-market LNG bunkering project on the US Gulf.”

The forthcoming terminal, which GLBP said is scheduled to begin operations in late 2028, will supply LNG by barge to vessels calling at Port Houston, the Port of Galveston, and the Port of Texas City.

The heads of agreement follows earlier project steps on permits and contracting.

GLBP noted, “This commercial milestone builds on the recent announcements that the GLBP project has secured all necessary major state and federal permits for construction and has selected its EPC contractor.”

The new announcement places GLBP within a tightening global balance between dual-fuel tonnage and bunkering infrastructure.

Citing DNV, the company said, “About 781 dual-fuel ships are already in operation globally and the total fleet is projected to reach roughly 1,400 vessels by 2030, with many newbuilds already confirmed.”

The release added, “Many industry analysts warn that existing LNG-bunkering infrastructure will not keep pace with the orderbook, risking a supply shortage over the same period,” and warned, “Vessels coming in service in 2027, 2028 and even in 2029 may not be able to find LNG supply unless commitments are made in early 2026 to accommodate the necessary infrastructure build-out.”

GLBP said it is negotiating with “several international shipping companies in the container and car carrier segments for the remaining volumes of the terminal’s initial phase.”

The project, under development on Shoal Point in Texas City to serve the wider Houston-Galveston complex and the Galveston Offshore Lightering Area, was described by GLBP as providing “critical infrastructure for the supply of clean-burning LNG to meet the growing demand for LNG as a marine fuel.”