Released September 17, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Galveston LNG Bunker Port LLC (GLBP) recently said it is one step closer to becoming the first port in the U.S. to refuel ships that run on liquefied natural gas (LNG). The Texas-based port made the announcement following a new gas-supply agreement.
GLBP is planning a facility near the Port of Galveston that would supply LNG to shipping, possibly before the end of 2026. Once built, it will be the first facility in the U.S. designed specifically for bunkering, which refers to the process of fueling a ship.
The company said Thursday that it reached a supply agreement with Houston Pipeline Company (HPL), a subsidiary of Energy Transfer LP (NYSE:ET) (Dallas, Texas), to secure natural gas supplies for the proposed Galveston LNG bunkering port.
HPL operates about 3,900 net miles of natural gas pipeline, with a capacity to move 5.3 billion cubic feet of natural gas per day (Bcf/d). Its network is connected to "historically significant" basins in south Texas and offshore, and it already is connected to distribution points up and down the Gulf Coast.
"Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility," said Jonathan Cook, an executive at GLBP.
The International Maritime Organization (IMO), a U.N.-backed agency overseeing the global shipping industry, set standards that mandate reductions in sulfur-dioxide emissions and other pollutants.
To meet those standards, shippers have installed onboard devices called scrubbers that clean the ship's exhaust or otherwise looked to fuels other than the sulfur-rich heavy fuel oil (HFO) more commonly used today.
IMO wants to see shippers cut their carbon emissions 40% relative to 2008 levels, by 2030. At least 5% of the fuels used by shippers, meanwhile, need to come from zero or near-zero emission technologies by the end of the decade as well.
LNG is cooled considerably, lowering the overall volume for deliveries. And because it's derived primarily from methane, which is made up of carbon and hydrogen atoms, it has no significant sulfur content.
LNG also is estimated to emit 20% less carbon dioxide than other fuels, though critics note that methane leaks up and down the LNG supply chain are a concern. Methane is a far more potent greenhouse gas than carbon dioxide.
Shippers nevertheless are in pursuit of natural gas, which is plentiful in the U.S. Globally, commodity trading company Vitol (Geneva, Switzerland) in July said it's doing its part to clean up the maritime shipping industry with new long-term charters for three bunkering vessels for LNG.
GLBP, for its part, said LNG is finding a home in everything from Roll-on-Roll off, or RoRo, car carriers to container vessels and cruise ships. At Galveston, cruise ships typically make around 380 port calls each year.
The company said the supply agreement with Houston Pipeline moves it one step closer to a final investment decision for Galveston. Assuming the timeline moves as expected, GLBP expects the LNG bunkering facility will be operational by the first half of 2027.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
GLBP is planning a facility near the Port of Galveston that would supply LNG to shipping, possibly before the end of 2026. Once built, it will be the first facility in the U.S. designed specifically for bunkering, which refers to the process of fueling a ship.
The company said Thursday that it reached a supply agreement with Houston Pipeline Company (HPL), a subsidiary of Energy Transfer LP (NYSE:ET) (Dallas, Texas), to secure natural gas supplies for the proposed Galveston LNG bunkering port.
HPL operates about 3,900 net miles of natural gas pipeline, with a capacity to move 5.3 billion cubic feet of natural gas per day (Bcf/d). Its network is connected to "historically significant" basins in south Texas and offshore, and it already is connected to distribution points up and down the Gulf Coast.
"Securing gas supply is essential to the successful delivery of LNG as a fuel in Galveston Bay, and working with an experienced natural gas pipeline operator like HPL will ensue the safe operation and delivery of supply to the facility," said Jonathan Cook, an executive at GLBP.
The International Maritime Organization (IMO), a U.N.-backed agency overseeing the global shipping industry, set standards that mandate reductions in sulfur-dioxide emissions and other pollutants.
To meet those standards, shippers have installed onboard devices called scrubbers that clean the ship's exhaust or otherwise looked to fuels other than the sulfur-rich heavy fuel oil (HFO) more commonly used today.
IMO wants to see shippers cut their carbon emissions 40% relative to 2008 levels, by 2030. At least 5% of the fuels used by shippers, meanwhile, need to come from zero or near-zero emission technologies by the end of the decade as well.
LNG is cooled considerably, lowering the overall volume for deliveries. And because it's derived primarily from methane, which is made up of carbon and hydrogen atoms, it has no significant sulfur content.
LNG also is estimated to emit 20% less carbon dioxide than other fuels, though critics note that methane leaks up and down the LNG supply chain are a concern. Methane is a far more potent greenhouse gas than carbon dioxide.
Shippers nevertheless are in pursuit of natural gas, which is plentiful in the U.S. Globally, commodity trading company Vitol (Geneva, Switzerland) in July said it's doing its part to clean up the maritime shipping industry with new long-term charters for three bunkering vessels for LNG.
GLBP, for its part, said LNG is finding a home in everything from Roll-on-Roll off, or RoRo, car carriers to container vessels and cruise ships. At Galveston, cruise ships typically make around 380 port calls each year.
The company said the supply agreement with Houston Pipeline moves it one step closer to a final investment decision for Galveston. Assuming the timeline moves as expected, GLBP expects the LNG bunkering facility will be operational by the first half of 2027.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
