Stabilis Solutions, the liquefaction plant operator and supplier to the small-scale LNG market in the United States, has completed the acquisition of another facility in Louisiana.
Stabilis said the acquisition of the Port Allen plant, located on the west bank of the Mississippi River near Baton Rouge, was made from Nu Blu Energy LLC.
Stabilis said the Port Allen plant would increase its fuel output by 30 percent. The value of the transaction was not disclosed.
“The Port Allen facility is strategically located in the eastern Gulf Coast region and will support some of Stabilis’ largest customers,” said Houston, Texas-based Stabilis.
Built in 2018, the facility has nameplate production capacity of 30,000 LNG gallons per day.
Stabilis said it expected to 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,” said Jim Reddinger, President and Chief Executive of Stabilis.
“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,” explained Reddinger.
The Stabilis CEO noted that the Port Allen plant currently supports North America’s largest LNG-powered offshore service vessel fleet located in Port Fourchon in Louisiana.
Stabilis, which is listed on the Nasdaq global exchange, forecasts that the acquisition will be immediately accretive to earnings.
Incremental annual gross earnings are projected to be between $2.5 million and $3.0M.