Pilot LNG LLC and GAC Bunker Fuels have signed an agreement for the supply of liquefied natural gas (LNG) as a marine fuel from the planned Galveston LNG Bunker Port terminal project in Texas, Kallanish Energy reports.

It would be the first dedicated LNG bunker terminal on the U.S. Gulf Coast.

The two companies have executed a Heads of Agreement that outlines the terms of the partnership.

Texas-based Pilot will provide LNG marine fuel to GAC on a delivered ex-ship basis for its customers in the Galveston Bay Port complex that includers the ports of Houston, Galveston and Texas City as well as the Galveston Offshore Lightering Area, on a long-term basis.

The project will provide a cleaner marine fuel as shippers face tightening emissions regulations, said Pilot CEO Jonathan Cook in a statement.

GAC Bunker Fuels’ global director Nicholas Brown said the project will enable his company to grow its portfolio of alternative marine fuels.

A final investment decision is expected in 2021 and operations could begin in late 2024.

Last July, Pilot LNG had outlined plans for the Texas LNG marine terminal.

The infrastructure of the terminal is to be designed around floating liquefied natural gas (FLNG) technology, including a liquefaction unit which will be supplied by FLNG specialist, Wison Offshore & Marine.

The FLNG would produce 500,000 tonnes per annum, or 66 million cubic feet per day.

Pilot LNG has said that additional bunkering infrastructure is required to ensure that LNG is adopted on a wider scale.

This post appeared first on Kallanish Energy News.