A coalition of over 40 civil society organizations has made an urgent appeal to financial institutions to publicly reject funding for the Galveston LNG Bunker Port (GLBP) project situated at Shoal Point, Texas. The proposed facility, a collaboration between U.S. maritime companies Seapath and Pilot LNG, aims to provide liquefied natural gas (LNG) to ships.
However, it has not received the Final Investment Decision (FID) due to its significant financial risk to prospective investors. To highlight these concerns, a formal letter was sent to various financial entities, signed by 45 organizations, which includes thorough analyses portraying the GLBP project as a high-risk investment.
Joanie Steinhaus, the Ocean Program Director at Turtle Island Restoration Network, emphasized the urgency of the situation, stating that given the current climate crisis, expanding to another LNG facility is not a viable solution. The Gulf region’s vulnerability, particularly during the Atlantic Hurricane season, poses a considerable threat, as storm surges could lead to environmental spills affecting local communities and ecosystems in Galveston Bay.
Hannah Saggau, a Senior Climate Finance Campaigner from Stand.earth, warned that the GLBP project is a risky investment that will adversely affect both the climate and local constituencies. She urged financial institutions to avoid risky ventures like GLBP and instead focus on sustainable, climate-friendly projects.
Additionally, Elissama Menezes from the Say No to LNG Campaign remarked that the project exemplifies a potential stranded asset. As global regulations on shipping tighten and the demand for fossil fuels declines, investments in the GLBP are becoming increasingly precarious.
With impending regulations from the International Maritime Organization imposing penalties on fossil fuels from 2028, financing this project is both regulatory and economically unsound. The coalition has requested that financial institutions commit to excluding all financial services for new LNG bunker port projects and specifically refrain from financing the Galveston LNG Bunkering Port.