Posted on October 11, 2026
By Chris Gray
The Galveston Wharves Board of Trustees approved a deal with Houston’s Power LNG on Thursday to develop a new LNG facility that could produce up to 400,000 gallons per day, an agreement that could establish the Port of Galveston as a regional leader in providing cleaner marine fuels.
According to the port, the 30-acre facility will be on the east side of a previously undeveloped 82-acre tract owned by the port, directly on the deepwater harbor. Its separate processing units, known as parallel liquefaction trains, can process up to 200,000 gallons per day, while modular liquefaction could ultimately expand production to 800,000 gallons per day.
The agreement also calls for Power LNG, founded in 2022, to coordinate with its customers and strategic partners to use its fleet to support refueling operations (also known as bunkering) at the ports of Houston, Galveston, and Texas City.
In a news release, Galveston Wharves port director and CEO Rodger Rees said the agreement would create jobs, attract more LNG-powered ships, and even help improve the local air quality.
“As more [of these] ships are built, demand for LNG marine fuel is reaching a tipping point,” Rees said. “This facility will give Galveston an opportunity to support this growing market while further diversifying our port’s operations.”
Other planned improvements include a shore-to-ship pier to supply ships and bunker vessels, an underground natural gas pipeline, and a storage tank that can hold up to 3 million gallons of LNG. (Volume-wise, it would take 300 18-wheeler tanker trucks to fill such a container.)
“The growth of marine LNG creates significant economic opportunity for the Galveston/Houston region while supporting the evolving needs of next-generation vessels and global trade,” Power LNG CEO Austin Terry said.
Pending regulatory approvals, Power LNG expects to begin supplying fuel in late 2028 and should have no trouble finding nearby customers. After Carnival’s Jubilee became the first Galveston-based LNG-powered cruise ship in December 2023, two more massive ships bound for the port could eventually line up at Pelican Island: Royal Caribbean’s Icon of the Seas, scheduled to shift to Galveston next August, and Carnival’s Tropicale, arriving the following April.
