Stabilis Energy has announced two deals to expand its presence in the distributed liquefied natural gas (LNG) and compressed natural gas markets in Mexico.
The Texas, US-based company has completed the acquisition of privately held Diversenergy, LLC and its subsidiaries to create one of the leading distributed LNG marketing and distribution companies in Mexico.
Stabilis has also completed the formation of a joint venture with Grupo CLISA, and other former owners of Diversenergy, to pursue investments in LNG and compressed natural gas assets in Mexico.
Financial terms of both deals were not disclosed.
Lee Kellough, former CEO of Diversenergy, will serve as President of Stabilis’ Mexican subsidiary (Diversenergy S.A.P.I. de C.V.) and Senior Vice-President of Stabilis.
Jim Reddinger, President and Chief Executive Officer of Stabilis, said, “We see significant growth opportunities in the large and expanding market for LNG and CNG fuel in Mexico. We welcome Diversenergy to the Stabilis team and look forward to working together to bring clean, low cost, and abundant natural gas to our customers in Mexico.”
“We are confident that this transaction creates a solid platform for Stabilis to become a leader in the LNG and CNG markets in Mexico. We believe that we have the right combination of people, equipment, and relationships to capitalize on the substantial growth opportunities we see throughout Mexico.”
Stabilis’ joint venture joint venture with Grupo CLISA subsidiary CryoMex, operating as Energía Superior Gas Natural LLC, plans to invest in LNG and compressed natural gas production, transportation, storage, and regasification assets that serve multiple end markets in Mexico. Grupo CLISA is a Monterrey, Mexico-based developer and operator of businesses in multiple end markets including energy.
Reddinger added, “Their existing partnerships with international companies to build and operate assets in Mexico demonstrate their ability to execute effectively and with integrity. We look forward to building a great distributed natural gas business in Mexico with our new partners.”
The joint venture will start evaluating LNG and compressed natural gas asset development opportunities in Mexico, including in the Monterrey, Sonora, and Mexico City regions. These assets could include LNG liquefaction facilities, cryogenic rolling stock equipment, compressed natural gas compression stations, and pressurised rolling stock equipment, among others.
In December last year, Stabilis announced a merger with American Electric Technologies to create a new small-scale LNG production and distribution company.
Then, earlier in August, cryogenic equipment manufacturer Chart Industries, Inc. announced a strategic investment in Stabilis 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.