Seapath, a maritime subsidiary of Libra Group, and Pilot LNG, a clean energy solutions company based in Houston, have formed a joint venture (JV) to develop, construct, and operate the first dedicated liquefied natural gas (LNG) bunkering facility in the US Gulf Coast, specifically in the Galveston Bay area. This facility is set to begin operations in mid-2026 and will provide fuel for LNG-powered vessels.

The joint venture will involve an initial investment of around $150 million, with a focus on serving the needs of the vital global and US trade corridor. The Greater Houston waterways generated over $906 billion in economic value to the US in 2022. The Greater Houston area was also named the top US port by tonnage in a 2023 US Department of Transportation report.

Pilot LNG aims to deliver LNG to both new and existing markets across the US, including fuel/bunkering terminals and related infrastructure. This joint venture represents the first of several strategic investments planned by Seapath and Pilot to create a network of LNG facilities in areas with unmet needs in the US.

Seapath, a US company led by Merchant Mariners and former service members, was established in response to the need for critical investments in the US maritime economy. While LNG bunkering infrastructure has been developing overseas, it has been slower to develop in the US. Seapath intends to invest strategically in innovative projects within maritime industrial facilities and US Jones Act vessels.

LNG has gained prominence as a cleaner and more environmentally friendly alternative to traditional marine fuels as the United Nations International Maritime Organization (IMO) advances its global strategy for maritime decarbonization. LNG can significantly reduce vessel emissions, including cutting nitrogen oxide emissions by 80-90% and reducing greenhouse gas emissions by 25% compared to heavy fuel oil. Its unique physical and chemical properties, such as its inability to ignite in liquid form, make it a safer alternative to traditional marine fuels.

According to Clarkson Research, approximately 60% of all new vessels ordered since 2022 are powered by alternative fuels, with roughly 80% of these orders for LNG-powered vessels, including those used by major cruise lines and container vessel operators.

This LNG bunkering facility in the Gulf Coast region will help meet the growing demand for cleaner marine fuel and assist customers in complying with tightening emissions regulations set by the IMO in 2020. Seapath and Pilot aim to develop more such facilities in ports across the US in collaboration with leading ports in the country.