Stabilis buys Port Allen LNG production facility
U.S. small-scale LNG and hydrogen provider Stabilis Solutions has acquired an LNG production facility in Port Allen, Louisiana from HR Nu Blu Energy.
Port Allen facility, built in 2018, has a production capacity of 30,000 LNG gallons per day. Its aquisition increases Stabilis’ total nameplate production capacity by approximately 30 per cent.
The facility is located in the eastern Gulf Coast region, which is an ideal location to support some of Stabilis’ largest customers.
The company believes that it will be able to sell all of the facility’s capacity immediately with contracts from existing customers.
The acquisition is projected to immediately accretive to Stabilis’ earnings. Incremental annual EBITDA is projected to be $2.5 – $3.0 million.
Jim Reddinger, president and CEO of Stabilis, said: “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.”
“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,” added Reddinger.
The terms of acquisition were not disclosed.