Stabilis Energy, Flint Hill Resources to buy land for second LNG facility

Stabilis Energy and Flint Hills Resources said their joint venture plans 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 gallons per day 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 gallon per day facility will produce LNG for customers in the Eagle Ford Shale.

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.

Stabilis Energy and Flint Hills Resources announced the formation of a joint venture to build up to five liquefied natural gas liquefiers serving oilfield fuel consumers on October 1, 2013. In addition to its first LNG production facility in George West, Texas (Eagle Ford Shale) and plans for the next location in Odessa, Texas (Permian Basin), the venture is pursuing site purchases in North Dakota (Bakken Shale) and other domestic oilfield markets for LNG production facilities that could begin production between 2016 and 2018.

Press Release, October 6, 2014; Image: Stabilis Energy