SOURCE: Stabilis Energy

Stabilis Energy

October 06, 2014 05:00 ET

Stabilis Energy and Flint Hills Resources Joint Venture Announce Plans for Liquefied Natural Gas Production Facility in Odessa, TX to Serve the Permian Basin

Venture's First LNG Facility to Open in Eagle Ford Shale in January 2015

BEAUMONT, TX--(Marketwired - October 06, 2014) - Stabilis Energy and Flint Hills Resources announced today plans for their joint venture to acquire property in Odessa, Texas for the proposed construction of its second planned Liquefied Natural Gas (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. 

"Stabilis is pleased to lay the groundwork for our second LNG liquefaction facility in Odessa," said Casey Crenshaw, President and CEO of Stabilis Energy. "Stabilis strives to provide oilfield engine operators with a reliable source of LNG fuel that helps reduce costs and improves environmental performance. The West Texas facility will complement our existing operations in South Texas and provide our customers with a complete LNG fuel solution across the region."

"We are excited to take this step toward realizing the joint venture's second LNG facility and we're very pleased to be doing it in Odessa," said Darren Tiemstra, General Manager of LNG for Flint Hills Resources. "It's an excellent location from which to serve customers in the Permian Basin and the property allows for future growth." 

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. 

The Stabilis Energy and Flint Hills Resources joint venture provides turnkey LNG fuel solutions including LNG production as well as transportation and logistics, field service, cryogenic equipment rental, and engine conversion and optimization service. The joint venture is currently working with oilfield customers on dual fuel engine conversions and dedicated natural gas engines for drilling and pressure pumping throughout Texas.

"Oilfield operators require a high level of service from their suppliers," added Casey Crenshaw. "We believe our deep understanding of oilfield service needs, along with our dedicated LNG production, distribution and service resources, will make the Stabilis and Flint Hills Resources joint venture the leading turn-key supplier of LNG to the oilfield market."

Stabilis Energy and Flint Hills Resources announced the formation of a joint venture to build up to five liquefied natural gas ("LNG") 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.

About Stabilis FHR Oilfield LNG LLC
The joint venture between Stabilis Energy and Flint Hills Resources was formed to build up to five LNG production facilities in the oilfield sector. Stabilis Energy will utilize its strong customer relationships and reputation in the North American oilfield sector to lead marketing, transportation and logistics, field services, and plant operations for the venture. Flint Hills Resources will provide its experience as a leader in the processing, distribution and marketing of traditional and alternative fuels to the venture. Stabilis Energy and Flint Hills Resources share management committee responsibilities.

Contact Information

  • Contact Information - Stabilis Energy
    Jim Reddinger
    Chief Financial Officer and Chief Operating Officer
    (409) 833-1115

    Contact Information - Flint Hills Resources
    Jake Reint
    Director of Public Affairs