Galveston LNG Partners With TOTE on Jones Act Bunker Fleet

Texas-based Galveston LNG Bunker Port (GLBP) has entered into a strategic partnership with TOTE Services to develop and operate a fleet of dedicated Jones Act-compliant LNG bunkering vessels serving the US Gulf Coast.

Under a newly signed heads of agreement, the two companies will collaborate on the design, construction, and long-term operation of LNG bunker ships or barges that will support GLBP’s planned small-scale LNG bunkering terminal. The project is being positioned as the first purpose-built LNG bunkering facility on the US Gulf Coast.

The partnership aims to establish a fleet of vessels that are US-built, US-owned, and US-crewed, capable of delivering LNG fuel throughout the Houston-Galveston port region, where demand for LNG as a marine fuel is steadily increasing.

A central element of the initiative is full compliance with the Jones Act, which requires coastwise LNG transportation to be carried out using domestic tonnage. The agreement outlines the next steps toward a charter contract for the first bunker vessel, with deployment targeted for mid-2026.

GLBP said the alliance enhances its ability to move into full project execution as market demand strengthens. The companies also emphasized that the fleet will be adaptable for future low-carbon fuels, with vessels designed to accommodate bio-LNG and e-LNG as drop-in alternatives.

Jonathan Cook of Galveston LNG Bunker Port described the partnership as a major milestone. “Securing TOTE Services as our Jones Act partner is a defining milestone for the project and the US LNG bunkering industry,” Cook said, highlighting TOTE’s operational experience with LNG vessels and fueling systems.

TOTE Services president Jeff Dixon said the agreement aligns with the company’s established role in LNG shipping. “This agreement reflects TOTE Services’ continued commitment to advancing practical, scalable LNG solutions that strengthen the US maritime industry,” he noted.

TOTE Services currently operates four LNG-powered cargo vessels and two LNG bunker ships, and has carried out more than 850 LNG bunkering operations. The company also played a leading role in managing construction of the world’s first LNG-fueled container ships and North America’s first LNG bunker barge.

GLBP is working toward a final investment decision in 2026, following anticipated state and federal permitting in 2025. The project has already secured key engineering, procurement, and construction agreements and continues advancing discussions with potential customers.

The Galveston LNG Bunker Port terminal is being developed at Shoal Point in Texas City and is expected to enter service in 2029. Construction will take place in two phases, with planned capacity reaching up to 720,000 gallons per day and two storage tanks holding 3 million gallons each.

The location is intended to supply LNG fuel across the wider Houston-Galveston port complex, including offshore lightering areas.