The U.S. Gulf Coast is poised to become a major domestic hub for liquefied natural gas marine fuel as Galveston LNG Bunker Port signed a strategic agreement with TOTE Services to develop and operate dedicated Jones Act LNG bunkering vessels.

The partnership, announced through a Heads of Agreement signed today, establishes a framework for vessel development, construction, and long-term operation to support the maritime industry’s growing demand for cleaner fuel alternatives in the greater Houston port complex.

The collaboration addresses a critical requirement of U.S. coastwise trade: vessels must be U.S.-owned, built, and crewed to transport LNG within domestic waters. The agreement lays out a path toward executing a charter agreement for the first LNG bunker vessel to support the Galveston LNG Bunker Port project by mid-2026.

“We are very pleased to enter into this strategic partnership with TOTE Services,” said Jonathan Cook of GLBP. “TOTE Services’ extensive maritime expertise and pioneering leadership in LNG bunkering make this collaboration a critical step for GLBP and our customers. The safe and reliable delivery of LNG to our customers is paramount. Securing TOTE Services as our Jones Act partner is a defining milestone for the project and the U.S. LNG bunkering industry.”

TOTE Services brings substantial credentials to the partnership. The company currently operates four large LNG-powered cargo vessels and two LNG bunker vessels, having safely completed over 850 total LNG bunkerings. As the nation’s leading Vessel Construction Manager, TOTE Services previously oversaw construction and management of the world’s first LNG-powered container ships and North America’s first LNG bunker barge.

“This agreement reflects TOTE Services’ continued commitment to advancing practical, scalable LNG solutions that strengthen the U.S. maritime industry,” said Jeff Dixon, President of TOTE Services. “We look forward to partnering with GLBP on U.S.-flagged LNG bunkering vessels for the transportation of sustainable marine fuels.”

The Galveston project has already cleared major regulatory hurdles, receiving all required federal and state permits in 2025 from agencies including the U.S. Army Corps of Engineers, the U.S. Coast Guard, the Texas Railroad Commission, and the Texas Commission on Environmental Quality.The company has also awarded engineering, procurement, and construction agreements for the project and is advancing customer offtake agreements.

GLBP is advancing toward a Final Investment Decision in 2026, with operations projected to commence in 2029.The terminal is being developed in two phases with a total capacity of up to 720,000 gallons per day accompanied by two 3-million-gallon storage tanks at Shoal Point in Texas City, Galveston County.

The partnership positions the facility to deliver not only conventional LNG but also provides customers with flexibility to integrate bio-LNG and e-LNG solutions as future-ready fuel options.This positions the Gulf Coast infrastructure to serve the growing Galveston Bay port complex fuel and bunker markets, including LNG marine fuel deliveries directly to customers in the port complex and surrounding areas such as the Galveston Offshore Lightering Area.

Galveston LNG Bunker Port is a joint venture between Navergy Infrastructure Partners and Seapath Group.