The 30-acre Pelican Island development is planned to pair two modular liquefaction trains with LNG storage, a feedgas pipeline and a shore-to-ship bunkering pier, subject to required approvals and agreements.
Published by Allstream Insiders
Allstream Insiders Summary
The Galveston Wharves Board of Trustees has approved a lease and development agreement with Power LNG LLC for a planned small-scale LNG production, storage and marine-fueling facility on Pelican Island. According to the Port of Galveston’s October 8, 2026, announcement, the 30-acre greenfield development is planned for the east side of an approximately 82-acre port-owned tract on the deep-water Galveston Harbor.
Power LNG plans an initial production capability of approximately 400,000 gallons of LNG per day from two parallel, 200,000-gallon-per-day liquefaction trains. The proposed facility would also include a 3-million-gallon LNG storage tank, an underground natural-gas pipeline for feedstock and a shore-to-ship pier intended to fuel ships and bunker vessels.
The port said commercial production is projected to begin in the fourth quarter of 2028, following completion of required approvals and agreements. The lease approval is an important project-development milestone, but the port agreement still requires progress on permitting, financing, commercial arrangements and operating agreements before the development advances.
What is planned for the Pelican Island LNG facility?
Power LNG’s planned Pelican Island facility would combine liquefaction, on-site storage and marine bunkering infrastructure at the Port of Galveston. The initial configuration described by the port is summarized below.
| Project element | Port-reported detail |
|---|---|
| Site | 30-acre greenfield development on Pelican Island, on the east side of an approximately 82-acre port-owned tract |
| Initial LNG production capability | Approximately 400,000 gallons per day |
| Liquefaction configuration | Two parallel trains, each planned for approximately 200,000 gallons per day |
| Expansion potential | Up to 800,000 gallons per day using modular liquefaction technology |
| Storage | One planned 3-million-gallon LNG storage tank |
| Marine infrastructure | Planned shore-to-ship pier for ships and bunker vessels |
| Target commercial-production date | Fourth quarter of 2028, subject to required approvals and agreements |
The stated 800,000-gallon-per-day figure is expansion potential, not the facility’s initial planned production capability. The announcement describes the potential increase as dependent on modular liquefaction technology at the same site.
How would the project support marine LNG bunkering?
The development is intended to create an LNG supply point for vessels calling at the Port of Galveston and potentially elsewhere in the Galveston, Houston and Texas City ship channels. The port said Power LNG’s strategic partners and customers are expected to coordinate bunkering operations with appropriately qualified vessels operating under U.S. Coast Guard and applicable Jones Act requirements.
The announced configuration includes an underground natural-gas pipeline to supply feedstock to the liquefaction facility, a storage tank to hold LNG, and a pier designed for vessel fueling. The release describes a fully integrated LNG fueling concept; it does not identify vessel operators, customer contracts or individual bunkering-vessel providers.
Future loading and bunkering activities remain subject to additional agreements
The port and Power LNG plan to negotiate additional arrangements for LNG and/or ISO tank-container loading at a future port-owned dock adjacent to the leased property. They also anticipate potential LNG-related activity at other port locations, including ISO-container loading and export operations at portions of Pier 34 and truck-to-ship LNG fueling and other early bunkering activities at portions of Pier 39.
Those activities are identified as anticipated future development. The October announcement does not establish that the additional dock agreements or Pier 34 and Pier 39 activities have been authorized, constructed or placed in service.
Allstream perspective: lease approval establishes a foundation for an integrated marine-fuel development
Allstream perspective: The approved lease gives Power LNG a defined waterfront location and a stated initial configuration that connects LNG liquefaction, storage, feedgas delivery and marine fueling. The two-train modular layout also distinguishes the initial 400,000-gallon-per-day plan from the separately stated 800,000-gallon-per-day expansion potential.
The next material development steps are the project’s required government approvals, financing and commercial and operating agreements. Until those conditions progress, the fourth-quarter 2028 commercial-production date should be treated as a project target rather than a completed or fully authorized construction schedule.
