Galveston Is Planning to Fuel Ships With a Plant on Pelican Island

The Galveston Wharves Board of Trustees approved a lease and development agreement with Power LNG on October 8 for a small-scale, modular LNG production, storage and bunkering facility on Pelican Island. The site is a 30-acre greenfield on the east side of an approximately 82-acre, port-owned tract on Galveston Harbor.

The plan calls for initial output of about 400,000 gallons a day from two liquefaction trains, with possible expansion to 800,000 gallons. It would include an underground natural gas pipeline, a 3-million-gallon storage tank and a shore-to-ship pier for fueling ships and bunker vessels. Commercial production is expected in the fourth quarter of 2028, once approvals and agreements are complete.

The agreement sets requirements for permits, project financing, rent and operating agreements, but the announcement gave no rent amounts, lease length or financing figures. Future activities could include loading LNG and ISO tank containers at a port-owned dock and truck-to-ship fueling at parts of Pier 39.

The cruise link is indirect. Coverage does not discuss cruise terminals, but it frames the facility as a way to fuel ships calling at Galveston and nearby channels as more LNG-powered vessels are built. For a busy cruise port, local fuel supply could matter for future ship deployments.

Sources: Cruise Industry News, Ship & Bunker