Power LNG LLC has won approval for a land lease and development agreement for a proposed LNG production and bunkering facility on Pelican Island in Galveston, Texas, Ship & Bunker reported. The decision concerns a port-owned site for the project, which is planned to combine LNG production with storage and infrastructure for supplying the fuel to ships.
The Galveston Wharves Board of Trustees approved the agreement unanimously on 8 October, according to a board announcement issued on Thursday and cited by the publication. The approval relates to both leasing the land and developing the facility. The report did not give a construction timetable or an expected start date for Power LNG’s operations.
The planned greenfield development will occupy 30 acres on the eastern side of a port-owned tract measuring approximately 82 acres, according to the board’s description. The site is at deep-water Galveston. Plans call for small-scale, modular LNG production facilities alongside storage and bunkering infrastructure; the report did not specify production capacity, storage volumes or the size of the proposed investment.
The land agreement follows a partnership announcement in August involving Power LNG and Ernestas, a Mexican LNG infrastructure company. Ernestas said the strategic partnership would develop LNG infrastructure, including bunkering at the Port of Galveston, Ship & Bunker reported. The partnership announcement and the subsequent land approval concern the development of LNG supply infrastructure at the Texas port, with bunkering included in the stated scope.
Power LNG is not the only company pursuing an LNG bunkering development in Galveston. Energy company Stabilis Solutions is also developing a facility there, with operations expected to start in the third quarter of 2028, according to Ship & Bunker. That schedule applies to the Stabilis project, rather than the newly approved Power LNG development on Pelican Island.