Houston-based Stabilis Solutions Inc. is expanding its reach in the growing liquified natural gas (LNG) bunkering sector with the acquisition of a production facility in Port Allen, LA.
The fuels specialist said Tuesday it had completed the acquisition of the facility from HR Nu Blu Energy LLC for an undisclosed amount.
The small-scale plant came online in 2018 and has nameplate production capacity of 30,000 LNG gallons/day, increasing Stabilis’ total nameplate production capacity by about 30%. Stabilis expects to be able to sell all the facility’s capacity immediately with contracts from existing customers.
The Port Allen facility, which sits on the Mississippi River upstream from the U.S. Gulf of Mexico, also supports North America’s largest LNG-powered offshore service vessel fleet located in Port Fourchon, LA, according to Stabilis CEO Jim Reddinger.
”The facility’s location is ideal to meet the growing clean energy needs of our customers in the Gulf Coast region,” Reddinger said.
“We are witnessing rapid expansion in LNG marine bunkering activity across North America, and this acquisition allows us to expand our LNG marine bunkering services to customers throughout the Gulf Coast, including the ports of Baton Rouge, New Orleans and beyond.”
The deal comes as Stabilis is ramping up its presence in the North American LNG fuel scene. Last month, it entered a partnership with the Port of Corpus Christi in Texas to promote LNG as a marine fuel. In March, it announced three new contracts for 40% of the liquefaction capacity at its small-scale plant in George West, TX.
Reddinger said the company sees more opportunities to acquire other LNG production facilities across North America.
Stabilis expects the deal to be immediately accretive to earnings, with incremental annual earnings before interest, taxes, depreciation and amortization projected to be $2.5-3.0 million.
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