Texas-based Pilot LNG and GAC Bunker Fuels will supply LNG as a marine fuel from a proposed Galveston LNG Bunker Port terminal project, which will be the first dedicated LNG bunker terminal in the region.

The companies have signed a Heads of Agreement which outlines the terms of the partnership.

If successful, the partnership will see Pilot provide LNG marine fuel to GAC on a delivered ex-ship basis for its customers in the Galveston Bay Port complex, including the ports of Houston, Galveston and Texas City.

Jonathan Cook, Pilot Chief Executive, said, “The Galveston LNG Bunker Port will provide the LNG to supply GAC’s growing market for cleaner marine fuel, particularly as its customers seek economic ways to comply with tightening emissions regulations, including IMO 2020.”

“The opportunity to work with such a strong global player like GAC is a very exciting step forward for Pilot and the Galveston project.”

Nicolas Browne, GAC Bunker Fuels’ Global Director, added, “We have a proven track record of more than three decades supplying quality marine fuels to the shipping sector, and we continually adapt to meet our customers’ evolving needs.”

“This agreement with Pilot will allow us to grow our portfolio of alternative fuels, with LNG as the cleanest and most cost-effective way for shippers to meet compliance.”