Pilot LNG LLC has reached a milestone in its efforts to build the Gulf Coast’s first dedicated liquefied natural gas (LNG) bunker terminal by signing a heads of agreement (HOA) for a long-term supply deal with an affiliate of the GAC Group. 

GAC Bunker Fuels procures fuel supplies for customers in the shipping industry. The HOA outlines the terms for Pilot to provide LNG marine fuel to GAC customers on a delivered ex-ship basis. Pilot is developing a facility in Galveston, TX, on Pelican Island, where a floating LNG vessel would be permanently moored with the capacity to produce 500,000 tons per year. 

LNG bunker barges would load from the terminal and then distribute the LNG to ships requiring fuel. Pilot has filed for key permits for the Galveston LNG Bunker Port (GLBP),...