A Jones Act Solution for LNG Bunkering in Houston

Galveston LNG Bunker Port and TOTE Services sign Jones Act HOA to develop LNG bunker vessels in Houston

10 Mar 2026

Galveston LNG Bunker Port and TOTE Services have signed a heads of agreement to develop liquefied natural gas bunkering vessels for the Houston port complex, in a move aimed at expanding access to lower-emission marine fuel along the US Gulf Coast.

The agreement, reached in January 2026, sets out a framework for designing, building and operating vessels that comply with the US Jones Act, which requires ships engaged in domestic coastwise trade to be built, owned and crewed by Americans. The partners aim to deploy the first charter vessel by mid-2026.

TOTE Services brings operational experience in LNG maritime logistics. The company has completed more than 850 LNG bunkering operations in the US, making it one of the early adopters of the fuel in domestic shipping.

For Galveston LNG Bunker Port, the partnership comes as the project moves towards a final investment decision expected later in 2026. The developer says it has already secured federal and state permits from the US Army Corps of Engineers, the US Coast Guard and the Texas Railroad Commission. Engineering and construction contracts for the terminal have also been awarded.

The proposed facility is designed to handle conventional LNG as well as bio-LNG and synthetic e-LNG, which can be used as drop-in alternatives with lower lifecycle emissions. Supporters say this flexibility could allow ship operators to shift gradually to cleaner fuels as supply expands.

The Jones Act requirement has historically limited the availability of LNG bunkering vessels in US domestic waters, as specialised ships must be constructed in American shipyards. Industry participants say that constraint has slowed the development of refuelling infrastructure compared with other major ports.

The Houston-Galveston region is one of the busiest port areas in North America and sits near the centre of the US LNG export industry. As global regulators increase pressure on shipping companies to cut carbon emissions, port operators and fuel suppliers are beginning to expand LNG infrastructure to serve vessels operating along the Gulf Coast.