Under a Heads of Agreement (HOA) between the two companies, Pilot LNG provide LNG marine fuel to GAC on a delivered ex-ship basis for its customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City, as well as Galveston Offshore Lightering Area, on a long term basis.
“The Galveston LNG Bunker Port will provide the LNG to supply GAC’s growing market for cleaner marine fuel, particularly as its customers seek economic ways to comply with tightening emissions regulations, including IMO 2020,” said Jonathan Cook, chief executive of Pilot LNG.
As international regulators tighten emissions standards, the maritime industry is increasingly turning towards LNG as the marine fuel of choice due to its significantly lower emissions profile and cost competitiveness; however, additional LNG bunkering infrastructure is needed before widespread adoption can occur.
The HOA with GAC follows Pilot LNG’s announcement in July that it had filed regulatory applications with the US Army Corps of Engineers and other relevant regulatory agencies, paving the way for a Final Investment Decision (FID) in 2021 and allow operations to begin in late-2024.
GAC Bunker Fuels’ global director Nicholas Browne commented: “We have a proven track record of more than three decades supplying quality marine fuels to the shipping sector, and we continually adapt to meet our customers’ evolving needs. This agreement with Pilot will allow us to grow our portfolio of alternative fuels, with LNG as the cleanest and most cost-effective way for shippers to meet compliance.”