Galveston Port Advances LNG Facility for Cruise Ships
The Port of Galveston has approved a lease for a new LNG production and bunkering facility on Pelican Island, aiming to meet rising demand for cleaner marine fuel from cruise ships and other vessels by late 2028.
The Port of Galveston is moving forward with a new liquefied natural gas facility to serve cruise ships and regional marine fuel demand. The Galveston Wharves Board of Trustees approved a lease and development agreement with Power LNG for a 30-acre production and bunkering facility on Pelican Island, with commercial production expected in the fourth quarter of 2028.
The 30-acre greenfield development will be located on the east side of an approximately 82-acre, port-owned tract on the deep-water Galveston Harbor. The project includes building an underground natural gas pipeline, a 3-million-gallon LNG storage tank, and a shore-to-ship pier for fueling ships and bunker vessels.
Production capacity and technology
The facility will be capable of producing approximately 400,000 gallons per day using two parallel liquefaction trains. It has the potential to expand to 800,000 gallons per day using modular liquefaction technology.
| Capacity Phase | Daily Production | Technology Used |
|---|---|---|
| Initial | ~400,000 gallons | Two parallel trains (~200,000 gal/train) |
| Potential Expansion | ~800,000 gallons | Modular liquefaction |
Bunkering and regional role
The LNG produced will primarily fuel cruise ships calling at the Port of Galveston and other locations in the Galveston, Houston, and Texas City ship channels. Power LNG's strategic partners and customers are expected to coordinate LNG bunkering operations using qualified vessels for ships in those channels.
Potential future LNG activities include ISO container loading and export operations at Pier 34, and truck-to-ship LNG fueling and early bunkering at Pier 39. As part of anticipated long-term development, the port and Power LNG plan to negotiate agreements for LNG and/or ISO tank container loading operations at a future port-owned dock adjacent to the leased property.
Partners, timeline and outlook
The approval by the Galveston Wharves Board of Trustees occurred on October 8. Port Director and CEO Rodger Rees stated the agreement paves the way for the port to play a leading role in providing cleaner marine fuels to the region. "This agreement paves the way for the Port of Galveston to play a leading role in providing cleaner marine fuels to the region," Rees said.
As more LNG-powered ships are built, demand for LNG marine fuel is reaching a tipping point. The growth of marine LNG creates significant economic opportunity for the Galveston and Houston region. It supports the evolving needs of next-generation vessels and global trade. The facility is projected to begin commercial production in the fourth quarter of 2028.
