Texas-based Galveston LNG Bunker Port (GLBP) has struck a strategic partnership with TOTE Services to develop and operate a fleet of dedicated Jones Act LNG bunker vessels for the US Gulf Coast.
Under a newly signed heads of agreement, GLBP and TOTE Services will work together on the design, construction and long-term operation of LNG bunker vessels or barges to serve GLBP’s planned small-scale LNG bunkering facility. The project is billed as the first dedicated LNG bunkering terminal on the US Gulf Coast.
The partners aim to deploy a fleet of US-built, US-owned and US-crewed bunker vessels capable of delivering LNG to customers across the wider Houston-Galveston port complex, where demand for LNG as a marine fuel continues to grow.
A core part of the project is compliance with the Jones Act, which requires LNG to be transported in US coastwise trade on domestic tonnage. The agreement lays out a pathway toward a charter contract for the first LNG bunker vessel, targeted by mid-2026.
GLBP said the partnership strengthens its ability to move toward full project execution as market demand builds. The companies also highlighted flexibility for future fuels, with the bunker fleet designed to support bio-LNG and e-LNG as drop-in options.
Jonathan Cook of Galveston LNG Bunker Port said bringing in TOTE Services was a key step for the project. “Securing TOTE Services as our Jones Act partner is a defining milestone for the project and the US LNG bunkering industry,” Cook said, pointing to TOTE’s experience in LNG ship operations and bunkering.
TOTE Services president Jeff Dixon said the agreement fits the company’s long-standing role in LNG. “This agreement reflects TOTE Services’ continued commitment to advancing practical, scalable LNG solutions that strengthen the US maritime industry,” he said.
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 is also known for overseeing the construction of the world’s first LNG-fuelled container ships and North America’s first LNG bunker barge.
GLBP is targeting a final investment decision in 2026, following the expected 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 planned to come online in 2029. The facility will be built in two phases, with total capacity of up to 720,000 gallons per day and two storage tanks of 3m gallons each. The site is positioned to supply LNG bunkers across the Houston-Galveston port complex, including offshore lightering areas.
