Galveston LNG Bunker Port and TOTE to Build US-Flag LNG Bunker Fleet for the Gulf Coast

Galveston LNG Bunker Port has entered into a strategic partnership with TOTE Services to develop and operate a dedicated fleet of Jones Act–compliant LNG bunker vessels serving the US Gulf Coast. The collaboration is aimed at supporting Galveston LNG Bunker Port’s planned small-scale LNG bunkering facility, which is being positioned as the first dedicated LNG bunkering terminal on the US Gulf Coast.

Under a newly signed heads of agreement, the Texas-based company and TOTE Services will jointly work on the design, construction and long-term operation of LNG bunker vessels or barges. The partnership targets the deployment of US-built, US-owned and US-crewed vessels capable of delivering LNG across the wider Houston-Galveston port complex, where demand for LNG as a marine fuel continues to expand.

A key focus of the project is full compliance with the Jones Act, which mandates that LNG transported in US coastwise trade must be carried on domestic tonnage. The agreement outlines a pathway toward a charter contract for the first LNG bunker vessel, with delivery targeted by mid-2026. Galveston LNG Bunker Port said the partnership strengthens its ability to advance the project toward execution as market demand builds.

The planned bunker fleet is also designed with flexibility in mind, allowing for future use of bio-LNG and e-LNG as drop-in fuel options. Jonathan Cook of Galveston LNG Bunker Port described the partnership as a defining milestone for both the project and the wider US LNG bunkering industry, highlighting TOTE Services’ extensive experience in LNG ship operations and bunkering.

TOTE Services president Jeff Dixon said the agreement aligns with the company’s long-standing involvement in LNG, noting its commitment to advancing practical and scalable LNG solutions that support the US maritime industry. TOTE Services currently operates four LNG-powered cargo ships and two LNG bunker vessels and has completed more than 850 LNG bunkering operations. The company also played a key role in overseeing the construction of the world’s first LNG-fuelled container ships and North America’s first LNG bunker barge.

Galveston LNG Bunker Port is targeting a final investment decision in 2026, following the anticipated receipt of federal and state permits in 2025. The project has already secured key engineering, procurement and construction agreements and continues to advance customer offtake discussions. The Galveston LNG Bunker Port terminal is under development at Shoal Point in Texas City and is scheduled to come online in 2029. The facility will be developed in two phases, with a total capacity of up to 720,000 gallons per day and two storage tanks of three million gallons each, supporting LNG bunkering across the Houston-Galveston port complex, including offshore lightering areas.