Galveston LNG Bunker Port Secures Initial LNG Supply Deal for 2029

Project Overview

The Galveston LNG Bunker Port (GLBP) is set to commence operations in 2028. The terminal will provide LNG as a marine fuel by barge to vessels calling at Port Houston, the Port of Galveston and the Port of Texas City. Its design capacity is up to 720,000 gallons per day, supported by two 3‑million‑gallon storage tanks.

First LNG Supply Agreement

An unnamed international shipping company has signed a heads‑of‑agreement to receive LNG from GLBP via a Jones Act‑compliant bunker vessel starting in 2029. The arrangement represents a commercial milestone that follows the project’s successful acquisition of all major state and federal permits and the selection of its engineering, procurement and construction (EPC) contractor. The agreement underscores GLBP’s credibility and the maturity of the project to deliver essential LNG bunkering infrastructure.

Ongoing Negotiations

GLBP is actively negotiating with several other international shipping operators in the container and car‑carrier segments to secure additional supply contracts. These discussions aim to expand the terminal’s customer base and reinforce the U.S. maritime fuel supply chain.

Market Impact

The new supply arrangement enhances U.S. maritime fuel resilience by adding a domestic LNG bunkering option that can support vessels seeking low‑sulphur or zero‑emission fuels. The terminal’s capacity and strategic location in Texas Bay position it as a key node in the growing LNG bunkering market.

Other Market Highlights

• **Sustainability Partnership** – MPA and DNV have renewed their partnership to promote the adoption of low‑ and zero‑emission marine fuels.
• **Wind‑Propulsion Technology** – LR has approved the wind‑propulsion concept of the Rondal, signalling progress in alternative propulsion systems.
• **Green Methanol Delivery** – Chimbusco completed the first green methanol bunkering at Yantian for the 16,136‑TEU Cosco Boxship.
• **Bunker Prices Snapshot** – Current key bunker prices: VLSFO in Singapore at $441/mt, MGO in Rotterdam at $647/mt, and Houston VLSFO at $436.5/mt.
• **NATO Bunker Contract Expansion** – Stonewin has secured a larger NATO marine fuels contract and hired a senior bunker manager.
• **GHG Compliance Discussion** – Blue Energy Partners’ Trine Braathen highlighted the growing role of bunker firms in achieving greenhouse‑gas compliance.
• **Industry Tributes** – The shipping community will hold a tribute for Paul Pappaceno of Monjasa on December 10.
• **Leadership Transition** – Pacific Basin is revamping its bunker team as Rakesh Sharma retires in 2026.
• **New Hire** – Petrol Ofisi has brought on a bunker trader from the Cockett Group.

These developments collectively illustrate a dynamic marine fuels landscape where infrastructure, technology, and regulatory collaboration are driving the shift toward cleaner, more resilient fuel options.