Freight News, Logistics, Sea

Galveston Leases 30 Acres for LNG Bunkering

[ October 9, 2026   //   Gary Burrows ]

The Galveston Wharves Board of Trustees has approved a lease and development agreement with Power LNG LLC for a liquefied natural gas production, storage and marine bunkering facility on Pelican Island, positioning the port to serve growing demand for LNG-powered vessels along the Texas Gulf Coast.

The proposed 30-acre facility would occupy part of an 82-acre port-owned tract on Galveston Harbor. Power LNG plans an initial production capacity of 400,000 gallons per day, with the potential to double output to 800,000 gallons through modular expansion.

The development would include two liquefaction trains, each capable of producing 200,000 gallons daily, a 3-million-gallon LNG storage tank, an underground natural gas supply pipeline and a shore-to-ship fueling pier.

Commercial production is targeted for the fourth quarter of 2028, subject to regulatory approvals, financing and completion of other agreements.

The facility would supply LNG to ships calling at Galveston and potentially other locations along the Galveston, Houston and Texas City ship channels. Bunkering operations would use qualified vessels operating under U.S. Coast Guard regulations and applicable Jones Act requirements.

“This agreement paves the way for the Port of Galveston to play a leading role in providing cleaner marine fuels to the region,” said Rodger Rees, Galveston Wharves port director and CEO.

Rees said the project would diversify port operations, create jobs and help accommodate the expanding LNG-powered vessel fleet.

Power LNG CEO Austin Terry said the development would provide an integrated LNG fueling operation encompassing production, storage, bunkering and vessel loading, with potential export capabilities.

The agreement also anticipates negotiations for future LNG and ISO tank container loading operations at a proposed port-owned dock adjoining the leased property.

Additional possibilities include LNG container loading and exports at Pier 34 and truck-to-ship fueling and early bunkering operations at Pier 39.

The project remains subject to government permits, financing and commercial agreements.

Tags: Galveston Wharves, Power LNG LLC