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The first LNG bunkering hub on the US Gulf Coast has been granted permission to begin work

Executives involved in the project said that the joint venture, which is developing the first marine fuel station for liquefied gas on the U.S. Gulf Coast, has received the final permits. Construction will begin later this summer.

LNG is seen as an alternative fuel that can reduce carbon emissions in the global shipping industry.

The U.S. administration of President Donald Trump is looking to increase LNG exports in order to reduce Europe's dependence on Russian gas following the invasion of Ukraine by Moscow three years ago.

The project wants to capitalize on a new market for U.S. Liquefied Natural Gas (LNG) that can be used in U.S. port and nearby waters, without the need for export licenses.

The facility is located along the Texas City Ship Channel, and the Galveston LNG Bunker Port company (GLBP) will supply LNG via fuel barges to the growing fleet of LNG-fueled vessels in the Greater Houston-Galveston area, GLBP stated.

GLBP was formed by Houston-based Pilot LNG, and Seapath, a division of the global business group Libra.

Seapath estimated that the total cost of the project is in the vicinity of $300 million.

The U.S. Army Corps of Engineers, and U.S. Coast Guard have given final approval to the project.

Seapath stated that the first bunker deliveries will be made in the second half 2027.

Seapath's President Josh Lubarsky said in a press release that "after several years of challenging work, we are now comfortably leading the market as the first dedicated supplier of LNG marine fuels in the U.S. Gulf".

"We made a substantial financial commitment to this Project and over the past few years have positioned GLBP as the leading clean fuel supply hub for the Galveston Bay/Gulf Region."

Seapath stated that the first phase will be able to produce 360,000 gallons of oil per day in approximately two years. The second phase will have a production capacity of 720,000 gallons of oil per day within eight to twelve months.

The GLBP project is the second dedicated LNG bunkering facility in the U.S. after Florida-headquartered joint venture JAX LNG, which operates a 360,000 gpd plant.

GLBP will support Port Houston, the U.S.'s largest port by waterborne tonnage and with a $906 billion national economic value.

Lomar Shipping, which operates a fleet with more than 40 ships, is also owned by Libra Group.

Americraft Marine is Libra's maritime subsidiary. It owns a Jones Act shipyard located in Florida. This is one of only a few yards in the U.S. building crew transfer vessels for the offshore wind industry. They also build tugboats, barges, and tugboats. (Reporting and editing by Elaine Hardcastle; Jonathan Saul)

(source: Reuters)