Galveston LNG Bunker Port secures natural gas supply agreement with Energy Transfer for bunkering facility
Galveston LNG Bunker Port (GLBP) has entered into a Gas Supply Agreement (GSA) regarding the delivery of natural gas to the GLBP terminal in Texas City, Texas.
Texas-based GLBP has laid the foundation for a partnership with Energy Transfer’s Houston Pipeline Company (HPL) for the supply natural gas to the proposed Galveston LNG Bunker Port project, which will be the first dedicated LNG bunker terminal in the region. The two companies have executed agreements, which outline the gas supply and additional pipeline facilities required for the delivery of natural gas to the GLBP facility. This gas supply agreement supports GLBP in providing LNG marine fuel to customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City, as well as Galveston Offshore Lightering Areas, on a long-term basis.
“Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility,” said Jonathan Cook on behalf of GLBP. “We are proud of the relationship we have with HPL and are excited about the opportunities we have to work closely with them in supporting the strengthening of US energy infrastructure, and the maritime industries decarbonization journey.”
Among the industries adopting LNG as a marine fuel, the cruise ship, Roll on-Roll off (“RoRo”) car carriers, and containerized shipping industries are particularly notable, both due to their significant bunker requirements as well as their prominent involvement in the Galveston Bay port complex.
Currently, cruise ships already make approximately 380 port calls each year at the three existing cruise terminals in Galveston, with a 4th terminal recently announced and starting construction. In addition, there are over 10,000 deep draft vessel calls annually in the Galveston Bay port complex. GLBP and HPL will play a major role in providing affordable, clean marine fuel to these essential maritime sectors.
The Galveston LNG Bunker Port is currently under development toward a Final Investment Decision (“FID”). The project is expected to be operational by the first half of 2027.
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