Galveston approves a lease for an LNG plant that could fuel ships at the port from late 2028

PortsBy Patrick KarshOct 15, 2026

The Port of Galveston has approved a lease for a plant that would make liquefied natural gas, or LNG, and fuel ships with it. The site is on Pelican Island, across the harbor from the cruise terminals. If it goes ahead, production would start in late 2028.

The port's board approved the deal with Power LNG at its October 8 meeting, according to Cruise Industry News and Seatrade Cruise News.

What the port approved

Galveston Wharves, which runs the port, signed a lease and development agreement with Power LNG. The deal covers permits, financing, rent and the business and operating agreements the project needs.

The plant would sit on 30 acres of empty land. That land is part of an 82-acre tract the port owns on Galveston Harbor.

How big the plant would be

Power LNG plans two production lines, each making about 200,000 gallons of LNG a day. That is about 400,000 gallons a day in total. The design is modular, so output could later grow to 800,000 gallons a day.

The project also includes:

An underground gas pipeline to feed the plant.
A storage tank that holds 3 million gallons of LNG.
A pier where ships and fuel barges can take on LNG.

Fuel barges would then carry LNG to ships at the Port of Galveston and at other spots on the Galveston, Houston and Texas City ship channels. Seatrade says those barges would need to meet US Coast Guard and Jones Act rules.

The port and Power LNG may also look at loading LNG containers at a future port dock, at parts of Pier 34, and fueling ships from trucks at parts of Pier 39.

Commercial production is set for the fourth quarter of 2028. That depends on permits, financing and other agreements being finished first.

Why this matters for cruise ships

LNG is a cleaner-burning fuel than the heavy oil many ships still use. A growing number of new cruise ships can run on it. Carnival Jubilee, which sails from Galveston, is one of them.

Ships that run on LNG need a supply where they sail. A local plant in the Houston-Galveston area would add one more option close to the cruise piers.

"As more LNG-powered ships are built, demand for LNG marine fuel is reaching a tipping point," said Rodger Rees, the port's director and CEO. He said the deal "paves the way for the Port of Galveston to play a leading role in providing cleaner marine fuels to the region."

What it means for cruisers

Nothing changes for your next cruise. The plant is years away and still needs approvals. It is planned for Pelican Island, away from the cruise terminals where you park and board.

Over time, though, it may play a part in where new ships end up. Fuel supply is one of many things lines weigh when they choose a home port. Galveston already has ships from Carnival, Royal Caribbean, Disney, MSC and Norwegian, as our Galveston port page shows. A local LNG supply is one more reason for lines to keep growing there.

It is also a reminder that Galveston's cruise business is getting bigger. The port is still in talks over a fifth cruise terminal, which we covered earlier this month.

My take

This is a slow story, not a breaking one, and a 2028 start date can slip. But fuel supply quietly shapes where cruise lines send ships. If Galveston can offer LNG on site, I expect Texas cruisers to see more new ships sailing from their home port.