Galveston LNG Files for Construction Permit in Texas

Galveston LNG Bunker Port, LLC (GLBP) is a partnership between Pilot LNG and Seapath Group. They are working on building a facility to turn natural gas into liquefied natural gas (LNG) in the Galveston Bay/Greater Houston port area.

GLBP has submitted applications to regulators to get permission to build and run a facility at Shoal Point in Texas City, Texas. The GLBP project will be the first terminal in the region that is specifically designed to provide liquefied natural gas (LNG) as marine fuel. This clean fuel option will be available for ships, according to the company’s news release.

GLBP has submitted important paperwork to government agencies for approval. This includes applications to the US Army Corps of Engineers (USACE) for the Clean Water Act and Rivers & Harbors Act, the Texas Railroad Commission for the Texas Clean Water Act Section 401 Water Quality Certification, and the United States Coast Guard for Waterway Suitability Assessment.

The USACE application for the proposed project includes two natural gas liquefaction trains that can produce about 600,000 gallons per day of LNG. It also includes two 3-million-gallon full containment LNG storage tanks, storage for natural gas liquids and refrigerant, facilities for treating the feed gas, a berth for loading bunker vessels, and related marine and loading facilities.

GLBP is in a great position to provide fuel and bunker services to the expanding Galveston Bay Port Complex. The company said it will deliver LNG marine fuel directly to customers in the port complex and nearby areas, like the Galveston Offshore Lightering Area.

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“The Galveston LNG Bunker Port project is progressing well, and we are thrilled to share that we have submitted the required permits,” said Shaun Davison, Chief Development Officer of Pilot LNG. “We believe that we will fulfill the strict requirements set by State & Local permitting authorities to ensure that the project is completed on schedule. This project will meet the increasing need for clean fuel supply in the Galveston Bay and U.S. Gulf Coast region by the end of 2026.”

“We have experience in developing, building, and operating energy infrastructure, which will be beneficial for this necessary facility,” said Joshua Lubarsky, President of Seapath Group. “This facility is an important investment in the United States’ maritime infrastructure. Once it is built, it will have immediate positive effects on the environment and economy in Texas City, Galveston Bay, and the U.S. Gulf Coast.”

Seapath Group, which is a company owned by the Libra Group, and Pilot LNG agreed to work together on a project in September 2023. This agreement outlines the plans for developing, designing, getting permits, and marketing a liquefaction project. The project is expected to start operating in late 2026.

GLBP restated that the decision to start building depends on finishing necessary business agreements, obtaining all required permits and approvals, and securing financial commitments.

The worldwide maritime industry is using LNG more and more as a fuel for ships to greatly decrease emissions and comply with stricter regulations, such as IMO 2020, which started on January 1, 2020.

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