Stabilis Solutions acquires LNG facility in Louisiana
Published by Sarah Smith,
Stabilis Solutions, Inc., (Stabilis), a provider of energy transition services including LNG and hydrogen fuelling solutions, has announced that it has completed the acquisition of an LNG production facility in Port Allen, Louisiana, US, from HR Nu Blu Energy, LLC. Terms of the acquisition are not disclosed.
The Port Allen facility is strategically located in the eastern Gulf Coast region and will support some of Stabilis’ largest customers. Built in 2018, the facility has nameplate production capacity of 30 000 LNG gal./d which increases Stabilis’ total nameplate production capacity by approximately 30%. Stabilis believes that it will be able to sell all of the facility’s capacity immediately with contracts from existing customers.
“We are excited with the opportunities presented by the Port Allen acquisition,” commented Jim Reddinger, President and CEO of Stabilis. “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. 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.”
Stabilis projects that the acquisition will be immediately accretive to earnings. Incremental annual EBITDA is projected to be US$2.5 - US$3.0 million.
Reddinger added, “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.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02062021/stabilis-solutions-acquires-lng-facility-in-louisiana/
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