Stabilis Closes ENGI Acquisition by LNG World News, May 2, 2014
Stabilis Energy has closed its acquisition of all of the U.S. based assets of Encana Natural Gas (ENGI), a unit of Encana.
Denver-based ENGI is a leading distributor of LNG fuel to domestic high horsepower engine operators in the oilfield, mining, rail, marine, over the road transportation, and industrial sectors. “We are proud to announce the addition of ENGI’s people, assets, and customer relationships to Stabilis Energy,” said Casey Crenshaw, President and CEO of Stabilis Energy. ”ENGI has a world-class staff that will help us reach our goal of being the leading provider of LNG fuel solutions to high horsepower operators in North America. They possess deep sector expertise and strong customer relationships that we believe will make Stabilis Energy an LNG industry leader across multiple geographies and end markets.”
In addition to adding ENGI’s staff, Stabilis has agreed to purchase its fleet of cryogenic rolling stock assets including storage and regasification trailers, mobile fueling units, and other related equipment. Stabilis will fulfill all of ENGI’s existing customer obligations including its existing contracts, subject to customer consent. Crenshaw stated, “Stabilis is excited about growing the LNG market in partnership with ENGI’s market leading customers.”
Stabilis plans to open its first LNG production facility in George West, TX in January 2015 to service oilfield customers in the Eagle Ford shale. The facility is being built as part of a previously announced venture with Flint Hills Resources, a leading refining, chemical and biofuels company and a subsidiary of Koch Industries, to build up to five LNG production facilities that target oilfield customers. The George West facility is under construction now and will be able to produce approximately 100,000 LNG gallons per day when complete. Other targeted liquefaction plant locations include West Texas, North Dakota, and other major oilfield regions. Stabilis also will continue to source fuel from ENGI’s large existing third-party supply network. [Emphasis added]