Wedoany.com Report-Apr. 2, The first dedicated liquefied natural gas (LNG) bunkering facility in the U.S. Gulf Coast, specifically in Galveston, Texas, has made a significant step forward. Seapath and Pilot LNG have entered into the first sales and purchase agreement (SPA) for the supply of LNG from a proposed liquefaction project in Texas City Industrial Complex, located within Galveston Bay. This groundbreaking deal marks a crucial milestone for the joint venture as they aim to meet the growing demand for LNG as a marine fuel source.
Dunmura, the bunkering company launching its 2024 operations, will utilize the LNG supplied under this agreement to cater to the expanding needs of the marine industry. Peter Mackey, CEO of Dunmura, emphasized that this contract is a “critical first step” in building the company’s liquefaction supply portfolio on a global scale. He highlighted the strategic importance of this collaboration for Dunmura’s customers and the potential for future partnerships.
Jonathan Cook, director of the Galveston LNG Bunkering Port (GLBP) and CEO of Pilot LNG, expressed enthusiasm about the partnership. “We are excited to be working with such an industry veteran like Peter and his team,” Cook stated. “This agreement is an important step for our project and underscores the leadership GLBP has in the Houston-Galveston region. We are looking forward to supporting Dunmura and its customers with LNG bunker deliveries, with operations expected to begin as early as 2027.”
The GLBP project has recently secured key regulatory approvals, including water quality certification from the Texas Railroad Commission and an air permit from the Texas Commission on Environmental Quality. These milestones bring the facility closer to final investment decision (FID), with the remaining necessary permits expected to be obtained by the first quarter of 2025. Construction is scheduled to begin by the end of the third quarter of 2025.
The terminal is being developed in two phases, with a total capacity of up to 720,000 gallons per day, complemented by two 3-million-gallon storage tanks. In addition to the gas supply agreements, the GLBP has secured contracts for long-term LNG supply and pipeline facilities, including a contract with Energy Transfer’s Houston Pipeline Company. Once operational, the facility will provide LNG to the Galveston Bay Port complex, which includes the vital ports of Houston, Galveston, Texas City, and the Galveston Offshore Lightering Areas. This will significantly enhance the region’s ability to support the growing LNG trade and marine logistics.
