Stabilis Solutions Inc., a provider of energy transition services including liquefied natural gas and hydrogen fueling solutions, has acquired an LNG production facility in Port Allen from HR NuBlu Energy.
The terms of the deal were not disclosed.
In making the announcement, Stabilis notes the Port Allen facility is strategically located in the eastern Gulf Coast region and will support some of Stabilis’ largest customers. Completed three years ago, the facility has nameplate production capacity of 30,000 LNG gallons per day, which increases Stabilis’ total nameplate production capacity by approximately 30%. Company executives say it’s likely 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,” Stabilis President and CEO Jim Reddinger said in the announcement. ”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.”
Reddinger noted a rapid expansion in LNG marine bunkering activity across North America, and contends the acquisition allows the company to expand its LNG marine bunkering services to customers throughout the Gulf Coast, including the ports of Baton Rouge, New Orleans and beyond.
NuBlue opened the Port Allen LNG Liquefaction facility for commercial production in April 2018, noting that the plant design allowed for easy expansion up to 90,000 gallons per when the LNG needs increase in the region. The plant is equipped with scales, load out and 100,000 gallons of permanent storage.
Stabilis projects that the acquisition will be immediately accretive to earnings. Incremental annual EBITDA is projected to be $2.5 million to $3.0 million.
“The incremental cash flow that this acquisition creates demonstrates the tremendous operating leverage that exists in the Stabilis platform,” Reddinger said. “We believe that additional opportunities exist to acquire LNG production facilities that expand our footprint across North America.”
Stabilis Solutions is a vertically integrated energy transition company that provides small-scale liquefied natural gas production, distribution and fueling services to multiple end markets in North America. Stabilis also provides hydrogen fueling services to its customers.
Read the full announcement.