Firms aim to turn US Gulf Coast into LNG bunkering hub by 2026

Pilot LNG and Seapath have partnered to develop, construct and operate an LNG bunkering facility in Galveston Bay.

PHOTO: A vessel moving into Galveston Bay from the Gulf of Mexico. Getty Images

The pair plans to invest $150 million initially. The project will be led by LNG industry veterans and they aim to cater to current and future LNG bunker demand in the US, energy infrastructure firm Pilot LNG said.

For the rest of this year, they will work on developing the project design and obtaining the necessary federal permits to build and operate the LNG terminal.

Pilot LNG and Seapath plan to announce a final investment decision (FID) for the project in the second half of next year.

“The infrastructure under development will provide LNG to a growing market seeking cleaner marine fuel, particularly as customers look for economical ways to comply with tightening emissions regulations, including regulations set by the IMO in 2020,” maritime firm Seapath’s chief executive Greg Otto said.

The facility is expected to initially produce 300,000 gallons/day (600 mt/day) of LNG. Production can be increased to 450,000 gallons/day (900 mt/day) in the future, Otto told Reuters.

By Nithin Chandran

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