Energy transition services provider Stabilis Solutions has completed the acquisition of an LNG production facility in Port Allen, Louisiana from HR Nu Blu Energy, in a deal expected to bolster its LNG bunkering operations.
Located in the eastern Gulf Coast region, the Port Allen facility will support some of Stabilis’ largest customers, the company said.
Built in 2018, the facility has nameplate production capacity of 30,000 LNG gallons per day which increases Stabilis’ total nameplate production capacity by approximately 30%.
Houston-headquartered Stabilis said it believed 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.’
Reddinger also said the facility, which currently supports North America’s largest LNG-powered offshore service vessel fleet located in Port Fourchon, Louisiana, would complement its LNG bunkering operations.
‘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,’ said Reddinger.
Stabilis projects that the acquisition - the terms of which were not disclosed - will be immediately accretive to earnings. Incremental annual EBITDA is projected to be $2.5 - $3.0 million.
As previously reported, last month, Stabilis Solutions and the Port of Corpus Christi entered into a Memorandum of Understanding (MOU) to facilitate the use of LNG as a marine fuel at the Texan port with the hope of attracting more LNG-capable vessels and to encourage conversions to LNG power.