Houston-based Pilot LNG is moving forward with a proposed floating liquefied natural gas bunkering facility on Pelican Island in Texas.
The company said on Thursday it filled regulatory applications with relevant government agencies for the project named Galveston LNG Bunker Port.
This includes the US Army Corps of Engineers as the lead permitting agency.
Pilot LNG says the project would be the region’s first dedicated bunkering terminal.
The terminal will supply LNG fuel to one of the largest port complexes in the US, including the Ports of Houston, Texas City and Galveston.
The facility infrastructure includes floating liquefaction technology by Pilot partner, Wison Offshore & Marine.
China’s Wison will design and build the liquefaction unit that will supply LNG to the end-user market in the area.
The non-propelled unit will be 148 meters long with a capacity of around 0.5 mtpa. It will also have a c type tank with a storage capacity of 18,000 cbm.
The bunkering project includes land-based facilities such as a control room, feed gas compressor, and a pipeline.
The total project costs could reach up to $500 million.
Pilot LNG is a new player founded in mid 2019 by Jonathan Cook and Shaun Davison.
Cook co-founded US floating player Excelerate Energy and also led the Norway-based shipping company Flex LNG.
The project would provide the “necessary infrastructure to supply the growing market for LNG marine fuel, substantially reducing marine emissions and cutting shippers’ fuel costs at the same time,” Cook said.
Pilot LNG plans to take a final investment decision on the project in the second half of 2021.
Following the decision and completion of construction works, the company would launch the facility’s operations in 2024.