A plan to build the first liquefied natural gas (LNG) bunkering terminal along the U.S. Gulf Coast is progressing through the permitting process by initiating a water suitability assessment with the U.S. Coast Guard (USCG).

Pilot LNG LLC’s proposed Galveston LNG Bunker Port (GLBP) project would comprise an LNG production vessel that would be permanently moored off Pelican Island, TX. The island is in Galveston Bay, one of the busiest marine corridors in the United States, providing access to the ports in Houston, Galveston and Texas City.

The project, which would have production capacity of 500,000 tons per year, equivalent to about 64 MMcf/d of gas, plans to make a positive final investment decision in late 2021 or early 2022 after getting regulatory approvals. Operations are...