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LNG facility to serve oilfield fuel applications in Texas

LNG Industry,

Stabilis Energy and Flint Hills Resources have announced plans for their joint venture to acquire property in Odessa, Texas for the proposed construction of its second planned LNG facility.

The plant is expected to have a capacity of approximately 100,000 gal./d and would serve high horsepower oilfield fuel applications in the Permian Basin in West Texas. Stabilis Energy will begin taking orders for LNG supply immediately and production could begin in 2016.

The joint venture's first LNG production facility is scheduled to open in January 2015 in George West, Texas. This 100,000 gal./d facility will produce LNG for customers in the Eagle Ford Shale.

Commenting on the news, Casey Crenshaw, President and CEO of Stabilis Energy, said: "Stabilis is pleased to lay the groundwork for our second LNG liquefaction facility in Odessa.

"Stabilis strives to provide oilfield engine operators with a reliable source of LNG fuel that helps reduce costs and improves environmental performance. The West Texas facility will complement our existing operations in South Texas and provide our customers with a complete LNG fuel solution across the region."

Darren Tiemstra, General Manager of LNG for Flint Hills Resources, added: "We are excited to take this step toward realising the joint venture's second LNG facility and we're very pleased to be doing it in Odessa. It's an excellent location from which to serve customers in the Permian Basin and the property allows for future growth."

The Odessa LNG liquefaction facility project is subject to receiving final approval from management at both companies. If approved, construction is expected to begin early next year with production starting in 2016.

The Stabilis Energy and Flint Hills Resources joint venture provides turnkey LNG fuel solutions including LNG production as well as transportation and logistics, field service, cryogenic equipment rental, and engine conversion and optimization service. The joint venture is currently working with oilfield customers on dual fuel engine conversions and dedicated natural gas engines for drilling and pressure pumping throughout Texas.

Crenshaw added: "Oilfield operators require a high level of service from their suppliers. We believe our deep understanding of oilfield service needs, along with our dedicated LNG production, distribution and service resources, will make the Stabilis and Flint Hills Resources joint venture the leading turn-key supplier of LNG to the oilfield market."

Adapted from press release by Katie Woodward

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