Port Galveston Trustees Back LNG Lease Talks on Pelican Island

Port Galveston's board unanimously approved lease negotiations for a proposed liquefied natural gas facility on Pelican Island, raising questions for island residents.

The Galveston Staff

By 

The Galveston Staff

Published 

Jul 17, 2026

Port Galveston Trustees Back LNG Lease Talks on Pelican Island

A unanimous 7-0 vote by Port Galveston's Board of Trustees on Tuesday moved the island's waterfront one step closer to hosting a liquefied natural gas facility, according to Galveston County Daily News. The board directed staff to advance long-term lease discussions covering roughly 30 acres on Pelican Island, where the company Power LNG wants to construct a small-scale LNG liquefaction plant — a facility that would chill natural gas into liquid form for export or distribution.

For Galveston residents, the proposal puts an industrial energy operation within close proximity to Galveston Bay, a body of water central to the island's commercial fishing, recreational boating, and tourism economy. LNG facilities require strict federal safety buffers, and any approved project would need clearance from the Federal Energy Regulatory Commission before construction could begin, a process that typically takes years and includes public comment periods.

Pelican Island sits directly across the channel from the Texas A&M Galveston campus and within sight of the Strand Historic District's northern edge. Residents in Texas City and La Marque, who already live near heavy industrial corridors along the bay's western shore, have long tracked how port-area energy projects affect air quality and property values in Galveston County.

The proposal arrives as Gulf Coast ports compete aggressively for LNG infrastructure investment. Galveston's port has historically balanced cargo and cruise operations, the Seawall and Pleasure Pier draw millions of visitors annually, and any large industrial expansion on Pelican Island would test how the port manages that dual identity. Community groups have raised concerns about safety zones and the visual impact on Galveston Bay's shoreline.

The board's action authorizes negotiations only; no lease has been signed. Residents should watch for a public comment window if and when Power LNG files a federal permit application, which would be the next major milestone before the project could advance further.

Source: Galveston County Daily News, originally reported July 15, 2026; adapted for Galveston readers with original local context.

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