Galveston LNG Bunker Port inks first bunker supply deal

The first dedicated LNG bunkering facility in the U.S. Gulf Coast, Galveston LNG Bunker Port (GLBP) – a joint venture between Seapath and Pilot LNG – has executed the first sales and purchase agreement (SPA) for the supply of LNG of its proposed liquefaction project in Texas City Industrial Complex within Galveston Bay.

Under the agreement, GLBP will deliver LNG to Dunmura, the 2024-launched bunkering company, on a free-on-board (FOB) or a delivered-ex-ship (DES) basis.

Dunmura intends to use the delivered volumes to serve the growing demand for LNG as a marine fuel.

According to Peter Mackey, CEO of Dunmura, this contract is “a critical first step” to building the company’s LNF supply portfolio globally.

Jonathan Cook, Director of GLBP and CEO of Pilot LNG, said: “We are excited to be working with such an industry veteran like Peter and his team and look forward to supporting their customers with LNG bunker fuel.

“The signing of this agreement is an important step for our project and highlights the lead that GLBP has in the Houston-Galveston region. We look forward to working with Dunmura and its customers, with LNG bunker deliveries starting as soon as 2027.”

The GLBP project recently secured water quality certification from the Texas Railroad Commission and an air permit from the Texas Commission on Environmental Quality, stepping closer to a final investment decision (FID).

The remaining permits are targeted for the first quarter of 2025 and the beginning of the construction by 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 accompanies by two 3-million-gallon storage tanks.

GBLP has already executed agreements for the gas supply and additional pipeline facilities required to support the facility’s operations, including the contract with Energy Transfer’s Houston Pipeline Company for the long-term LNG supply to GLBP.

Once operational, the facility will provide LNG to the Galveston Bay Port complex, which includes the crucial ports of Houston, Galveston, Texas City, and the Galveston Offshore Lightering Areas.