Power LNG LLC has reached an agreement with the Galveston Wharves Board of Trustees to develop a modular liquefied natural gas (LNG) production and storage facility on Pelican Island. The 30-acre site will include liquefaction trains capable of producing 400,000 gallons per day, with plans to expand to 800,000 gallons per day. The project also involves constructing an underground gas pipeline, a storage tank, and a shore-to-ship pier for fueling vessels. The facility is expected to support LNG bunkering for ships in the Galveston, Houston, and Texas City ship channels.
The lease outlines requirements for government permits, financing, and operational agreements, as well as future plans for LNG-related activities at nearby port locations. Galveston Wharves' director, Rodger Rees, highlighted the growing demand for LNG marine fuel as more LNG-powered ships are built, emphasizing the facility's role in diversifying the port's operations.
Power LNG is also seeking Energy Department authorization to export LNG via ISO containers to countries with which the U.S. has or will establish free trade agreements. The company aims to replace its existing FTA authorization with the new one, expanding its export capabilities. Earlier this year, Power LNG merged with United Energy LNG to form a scalable small-scale LNG platform targeting industrial, power, and transport markets across North America.
The merged entity aims for a liquefaction capacity of up to 540,000 MTPA at full deployment, focusing on modular, regionally targeted solutions. This approach emphasizes faster project execution and cost-effective access to clean fuels for underserved markets, bypassing traditional pipeline constraints through virtual logistics. The project represents a shift toward more flexible and scalable LNG development models.