The Galveston Wharves Board of Trustees approved the lease and development agreement for LNG facilities with Power LNG, which will soon launch the first LNG fueling facility on the Gulf Coast. Power LNG plans to establish a facility for the production, storage, and fueling of liquefied natural gas on Pelican Island.
Details of the New Facility
This agreement includes a development spanning 30 acres on the eastern side of an 82-acre property owned by the port, which is being developed as one of several large and deep-water sites in Texas. The Port of Galveston has a total of 357 acres of waterfront land with a prime location, including 100 acres at the Port of Galveston.
Production and Storage of LNG
Power LNG intends to develop a facility capable of producing approximately 400,000 gallons of liquefied natural gas per day. This facility will utilize two simultaneous liquefaction trains, each capable of producing about 200,000 gallons per day, with the potential to increase production to 800,000 gallons per day. Additionally, Power LNG has proposed the construction of an underground pipeline to supply feedstock to the facility, an LNG storage tank with a capacity of 3 million gallons, and a dock for fueling ships and fuel vessels.
Austin Tree, CEO of Power LNG, emphasized that the company will develop a fully integrated LNG fueling solution that includes liquefaction, storage, fueling, and export capabilities. This facility is expected to be commercially operational in the fourth quarter of 2028.
Impact on the Marine Fuel Market
Galveston Port Director Roger Rees noted that with the increasing construction of LNG-powered vessels, the demand for LNG marine fuel has reached a milestone. This facility provides an opportunity for the Port of Galveston to support this growing market and further diversify port operations.
The Port of Galveston announced in early 2024 that it would be one of the first ports in the United States to offer LNG services to vessels, considering this a strategic advantage to attract cruise ships, such as those from Carnival Cruise Line.
