Chart Industries, Inc. has announced a strategic investment in Stabilis Energy, Inc. of up to $7m for up to 9% of common equity.
To support the small-scale LNG growth in the US, Stabilis and Chart jointly built a 100,000 LNG gallon per day liquefier in Texas to service multiple end markets.
For the liquefier, Chart supplied the liquefaction train, storage gas pre-treatment, and truck loading facilities, which contributed to the record production levels of the plant.
“We are pleased to announce this strategic investment in Stabilis Energy,” said Jill Evanko, CEO of Chart.
“We look forward to providing equipment and process to Stabilis and other customers as they expand in the small-scale and utility-scale LNG market. We expect over $650 million of opportunity in this market for our products in the next three years.
“Stabilis welcomes Chart Industries as a shareholder,” said James Reddinger, President and CEO of Chart.
“As a global market leader in LNG production equipment and process systems, we appreciate Chart’s confidence in us. This transaction better positions Stabilis to pursue our North American small-scale LNG growth strategy, which is currently focused on plant development opportunities in the US and Mexico.”
“Chart’s investment will increase our publicity traded float and total share outstanding, thereby helping Stabilis meet its NASDAQ listing requirements. Furthermore, the investment will reduce our financial leverage and give us a stronger balance sheet to support our growth plans.”