Stabilis Solutions has acquired an LNG production facility in Port Allen, Louisiana.
The energy transition services provider on Monday (1st June) said that it had acquired the location from HR Nu Blue Energy. Terms of the deal were not disclosed.
Strategically located in the eastern Gulf Coast region, the acquired facility has a nameplate production capacity of 30,000 LNG gallons per day, which will increase Stabilis’ total nameplate production capacity by approximately 30%.
Commenting on the deal, Jim Reddinger, President and CEO of Stabilis, said, “We are excited with the opportunities presented by the Port Allen acquisition.”
“The facility’s location is ideal to meet the growing clean energy needs of our customers in the Gulf Coast region. In addition, it currently supports North America’s largest LNG-powered offshore service vessel fleet located in Port Fourchon, Louisiana.”
Built in 2018, the facility will support some of Stablis’ largest customers.
Stabilis believes that it will be able to sell all of the facility’s capacity immediately with contracts from existing customers.
“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,” Reddinger continued.
“The incremental cash flow that this acquisition creates demonstrates the tremendous operating leverage that exists in the Stabilis platform. We believe that additional opportunities exist to acquire LNG production facilities that expand our footprint across North America.”