Pilot LNG and GAC Bunker Fuels have signed a Heads of Agreement on LNG marine fuel supply from Pilot’s proposed Galveston LNG Bunker Port, which will be the region’s first dedicated LNG bunker terminal.
In July Pilot LNG said it had filed a regulatory application in relation to the bunker port, which will be located on Pelican Island.
The new HOA, which outlines the terms of a partnership between two companies, provides for Pilot to supply LNG marine fuel to GAC on a Delivered Ex-Ship (DES) 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 Pilot Chief Executive, Jonathan Cook.
GAC Bunker Fuels’ Global Director Nicholas Browne noted: ‘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.’
GAC Bunker Fuels says that it is the world’s only bunkering company with an integrated ISO 9001, 14001 and 45001 certification for bunker procurement, which also covers LNG as a marine fuel.
In September, GAC made its first foray into marine LNG supply acting as the bunker broker for the Swedish dual-fuelled vessel Fure Ven when it became the first non-US flagged vessel to bunker LNG in the US, taking on supplies from Eagle LNG at the Port of Jacksonville (JAXPORT).
A Final Investment Decision (FID) on the Galveston project is expected in 2021. If it receives the green light, operations could begin in late 2024.
John Lindquist, Commercial Manager, GAC North America, will be taking part in the live LNG session at the virtual Maritime Week Americas conference on 21-22 October. The discussion, moderated by Petrospot’s Lesley Bankes-Hughes, is the penultimate conference session on 22 October. Click here to register for the free-to-attend MWA 2020.