2026-10-13
- The Galveston Wharves Board of Trustees reportedly approved a lease and development agreement with Power LNG LLC on October 8, 2026, for a small-scale, modular LNG (Liquefied Natural Gas) facility on Pelican Island, Texas.
- The facility is planned on a 30-acre greenfield site and is reported to produce about 400,000 gallons per day from two parallel liquefaction trains, with modular expansion to 800,000 gallons per day.
- A 3-million-gallon LNG storage tank, an underground feed-gas pipeline, and a shore-to-ship pier for ship fueling and bunkering vessels are included in the plan.
- Commercial production is projected for the fourth quarter of 2028, subject to required approvals and agreements.
- A U.S. Department of Energy (DOE) application for ISO tank container LNG exports of up to 51.75 billion cubic feet per year through 2050 is reported to be pending.
The Galveston Wharves Board of Trustees in Texas approved a lease and development agreement with Power LNG LLC at its October 8, 2026 meeting, according to reports. The agreement covers a small-scale, modular facility for LNG production, storage, and fuel bunkering on Pelican Island, on the east side of an approximately 82-acre port-owned tract on Galveston Harbor. The planned facility would occupy 30 acres and would initially produce about 400,000 gallons of LNG per day. Commercial production is projected for the fourth quarter of 2028 once required approvals and agreements are completed.
The approval appears to be a first step that settles site use and development terms rather than a construction start or a Final Investment Decision (FID). According to reports, the agreement addresses government permits and approvals, project financing, rent and other charges, and commercial and operating agreements. The investment amount and lease term have not been disclosed. Because the project combines compact liquefaction with marine fueling and container exports, it is understood to follow a different scale and business model from large export terminals.
The developer is Power LNG LLC, a Texas-based company, and the site is provided by the Galveston Wharves, which operates the Port of Galveston. The board approved a lease and development agreement for a small-scale, modular LNG production, storage, and fuel bunkering facility. Austin Terry, chief executive officer of Power LNG, was quoted as describing a “fully integrated LNG fueling solution” that covers liquefaction, storage, bunkering, vessel loading, and export.
The facility is reported to include four main elements. First, an underground natural gas pipeline would supply feedstock to the site. Second, two parallel liquefaction trains of about 200,000 gallons per day each would produce LNG. Third, a single LNG storage tank with a capacity of 3 million gallons would be built. Fourth, a shore-to-ship pier would allow ships to be fueled and bunkering vessels to be loaded. The liquefaction units use modular technology, so additional modules could be added as demand grows. The specific liquefaction technology licensor and the EPC (Engineering, Procurement and Construction) contractor have not been disclosed.
Bunkering would be carried out by qualified vessels operating under U.S. Coast Guard and Jones Act requirements. These vessels could serve ships calling at the Port of Galveston and at other locations in the Galveston, Houston, and Texas City ship channels. Power LNG’s strategic partners and customers are expected to coordinate operations, although their names have not been released.
The port and Power LNG also plan to negotiate LNG and/or ISO tank container loading at a future port-owned dock next to the leased property. Possible activities at Pier 34 include ISO container loading and export, and possible activities at Pier 39 include truck-to-ship fueling and early bunkering. Local press reports indicate that the port separately hopes to start an ISO container export operation at Pier 37 as early as later this year, ahead of completion of the Pelican Island plant.
Numbers
The site covers 30 acres on the east side of an approximately 82-acre port-owned tract. The port is reported to own 357 acres of waterfront land, including 100 acres on Galveston Harbor next to a shipyard that Davie Defense is developing.
Initial production capacity is about 400,000 gallons per day, made up of two liquefaction trains of about 200,000 gallons per day each. Converted to metric units, this is roughly 1,514 cubic meters per day, or about 146 million gallons per year if operated every day of the year (converted values). Modular expansion could raise capacity to 800,000 gallons per day. Storage is provided by one 3-million-gallon tank, equivalent to about 7.5 days of initial production (converted value).
On the export side, Power LNG filed an application with the U.S. DOE on May 22, 2026, and the DOE published a notice of receipt on May 27, 2026. The requested volume is the equivalent of up to 51.75 billion cubic feet of natural gas per year, for a term through December 31, 2050. The destinations are countries with a free trade agreement (FTA) with the United States that requires national treatment for trade in natural gas. LNG would be loaded into approved ISO tank containers and then onto ocean-going vessels. The application refers to the proposed Galveston facility as “Project Seawolf,” and the DOE docket shows no decision to date.
On the demand side, port director and chief executive Rodger Rees estimated that four LNG-powered cruise ships could use about 2 million gallons per week. Investment, employment, and rent figures have not been disclosed.
Timeline
- July 2025 — A merger agreement between United Energy LNG and Power LNG was reported.
- May 22, 2026 — Power LNG filed a DOE application for ISO container LNG exports to FTA countries.
- May 27, 2026 — The DOE published notice of receipt of the application.
- June 1, 2026 — Reports noted that Power LNG had asked the DOE to approve ISO container exports from the proposed Galveston facility.
- August 13, 2026 — Power LNG was reported to be joining forces with Mexico’s Enestas on the Galveston project.
- October 8, 2026 — The Galveston Wharves board approved the lease and development agreement. A local newspaper reported that the board voted unanimously on the first step.
- Fourth quarter of 2028 — Projected start of commercial production, subject to approvals and agreements.
Note
An ISO tank container is a cryogenic tank container built to International Organization for Standardization specifications and used to move LNG in small volumes by ship, truck, or rail. Bunkering means supplying fuel to a ship.