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Pilot LNG Announces “Galveston LNG Bunker Port” Project to Provide Clean-Burning LNG Marine Fuel to Ports of Houston, Texas City & Galveston

Pilot LNG LLC (Pilot LNG), a clean energy solutions company focused on providing infrastructure solutions to supply new markets with clean-burning natural gas, announced today the filing of its regulatory applications paving the way for the development of the region’s first dedicated LNG bunker terminal, Galveston LNG Bunker Port, to be located on Pelican Island. The company expects a Final Investment Decision on the project in the second half of 2021 and operations starting in 2024.

Galveston LNG Bunker Port Project Rendering. Image courtesy: Pilot LNG LLC

“Pilot LNG’s Galveston LNG Bunker Port will provide clean-burning LNG to one of the US’s largest Port complexes,” said Pilot LNG Chief Executive, Jonathan Cook. “The proposed Galveston LNG Bunker Port would provide the necessary infrastructure to supply the growing market for LNG marine fuel, substantially reducing marine emissions and cutting shippers’ fuel costs at the same time,” Cook added.

The facility infrastructure will be designed around floating liquefaction (FLNG) technology to be engineered, and constructed by Pilot partner, Wison Offshore & Marine. “Wison is pleased to be part of this breakthrough U.S. project by designing and building the liquefaction unit, that will supply LNG to the end-user market in the Galveston, Houston and Texas City port complex”, stated Vivian Li, head of Wison Offshore & Marine in North America. “Since delivering the world’s first FLNG facility currently operating in Argentina, Wison has developed numerous floating solutions across the LNG value chain, with a focus on promoting a cleaner energy infrastructure alternative to the global market.”

As international regulators tighten emissions standards, the maritime industry is increasingly turning towards LNG as the marine fuel of choice due to its significantly lower emissions profile and cost competitiveness; however, additional LNG bunkering infrastructure is needed before widespread adoption can occur. Specifically, IMO 2020, which limits sulfur content to less than 0.5% m/m (mass by mass) globally and to less than 0.1% m/m in designated Emission Control

Areas (ECAs)including US coastal waters and the Galveston Bay area,makesit substantiallyharder for traditional marine fuelsto complywith regulations and more expensive for shippers to operate. LNGwhen used as a marine fuelsignificantly reduces vessel emissions, including eliminatingvirtually all SOx emissions without the need for expensive scrubbers or other technologies and achieves approximately 80% -90% NOx emission reductions compared to other marine fuels. In addition, LNG produces virtually no particulate matter, altogether resulting in a significantly cleaner fuel. The Galveston Bay area,which encompasses the industrial Ports of Houston, Texas City and Galveston, is an ideal location to addLNG bunkering infrastructure with over 10,500 deep-watervessel visits in2019, over 133,000 tug/tow movements on the Houston Ship Channel, and the nation’s fourth busiest cruise terminal. In recent years, LNG as a marine fuel has experiencedsignificantgrowth around the world, particularly in Europe and Asia; however, the US is only now starting to see widespread adoption. New LNG bunkeringinfrastructurein the USis needed to facilitate the continued rapid global adoptionof clean burning LNGmarine fuel.
Source: Pilot LNG LLC

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