Chart Industries invests in Stabilis Energy
Published by David Rowlands,
According to the statement, the transaction is scheduled to close within the next 30 days subject to both companies meeting certain closing conditions. Chart claims the actual investment and ownership will be determined by an agreed upon formula at closing.
Small scale LNG is a key aspect of the global LNG infrastructure buildout, as these smaller liquefaction facilities serve specific uses such as marine bunkering, fuel for over the road transport, gas-LDC peak storage and power generation. Together, Stabilis and Chart constructed a 100 000 gal./d LNG liquefier in Texas, with the aim of servicing numerous end markets, including energy, industrial, mining, and Mexican exports. Chart provided the liquefaction train, storage, gas pretreatment, and truck loading facilities, which contributed to the record production levels of the plant.
Jill Evanko, Chief Executive Officer of Chart, said: “We are pleased to announce this strategic investment in Stabilis Energy.
“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 US$650 million of opportunity in this market for our products in the next three years.”
James Reddinger, President and Chief Executive Officer of Stabilis, added: “Stabilis welcomes Chart Industries as a shareholder.
“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 United States and Mexico.
“Chart’s investment will increase our publicly traded float and total shares 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.”
According to the statement, Stabilis completed a share exchange transaction with American Electric Technologies, Inc. on 26 July 2019 and, as of 29 July, has subsequently has been trading on the Nasdaq Capital Market under the ticker symbol ‘SLNG’.
Read the article online at: https://www.lngindustry.com/small-scale-lng/06082019/chart-industries-invests-in-stabilis-energy/
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