- Submits Permit Application for Monterrey Mexico LNG Production Facility
- Begins Signing LNG Supply Agreements with Local Customers
HOUSTON, TX / ACCESSWIRE / February 26, 2020 / Stabilis Energy, Inc. (“Stabilis“) (OTCQX:SLNG) today announced that it achieved a major milestone it its Mexican growth plan by filing a permit application to build and operate a small-scale liquefied natural gas (“LNG”) production facility in Monterrey, Nuevo Leon, Mexico. Stabilis has also started signing LNG supply agreements with Mexican customers for sales from that location.
LNG Production Facility Permit
The permit application seeks approval to install two LNG production units at a Monterrey, Mexico location. The first unit is a 20,000 gallon per day LNG production facility that Stabilis currently owns and can deploy immediately. The second unit is a 100,000 gallon per day LNG production facility that would be similar to the one that Stabilis currently operates in George West, Texas.
The proposed facility will be located on industrial property owned by affiliates of Stabilis’ joint venture partner, CryoMex Investment Group LLC (“CryoMex”). The site includes access to the natural gas and electricity supplies required to operate an LNG production facility. It also provides easy access to major highways for truck distribution.
“Stabilis is pleased to take this next step in expanding our LNG capabilities in Mexico. Installing our liquefier in Monterrey will allow Stabilis to quickly expand in the Mexican market with relatively low capital expense,” commented Jim Reddinger, President and Chief Executive Officer of Stabilis. “It will also increase the return on capital on our existing asset base. We believe that the Monterrey facility will be fully subscribed when it opens.”
Stabilis expects the permitting process to take approximately 6-9 months to complete before construction will begin. Pending timing on the permitting process, Stabilis believes that it could begin LNG production by the end of 2020.
LNG Supply Agreement
In connection with the production facility development, Stabilis has started executing multi-year LNG supply contracts with new customers in the region. Stabilis recently signed a multi-year LNG supply contract with a new industrial customer that could require up to 25,000 LNG gallons per day once fully operational. Stabilis is currently pursuing other similar LNG supply agreements with multiple customers.
LNG will be provided from the Monterrey facility once it is commissioned. In the interim, LNG will be provided from Stabilis’ existing facility in Texas. LNG transportation, storage, and vaporization equipment will be provided from Stabilis’ existing fleet.
“Our goal is to provide access to clean, low-cost natural gas to industrial customers throughout Mexico,” continued Reddinger. “We are encouraged by the Mexican market’s reception to the LNG value proposition, and we are confident that building our in-country production and distribution capabilities will accelerate adoption of LNG fuel.”
Stabilis Mexican Joint Venture and Transportation Hub
Stabilis formed a joint venture with CryoMex Investment Group LLC (“CryoMex”) in 2019 to pursue investments in distributed natural gas production and distribution assets in Mexico. CryoMex is led by Grupo CLISA, a Monterrey, Mexico-based developer and operator of businesses in multiple end markets including energy.
Stabilis recently opened an LNG transportation hub to facilitate the delivery of up to 50,000 LNG gallons per day to customers in Northeastern Mexico. LNG is supplied by the Stabilis liquefaction facility in George West, Texas. The transportation hub is designed to increase supply security to Stabilis’ customers by reducing border crossing and related logistics risks.
About Stabilis Energy
Stabilis Energy, Inc. is a vertically integrated provider of clean natural gas fueling solutions to multiple North American end markets. We have safely delivered over 200 million gallons of liquefied natural gas (“LNG”) through more than 20,000 truck deliveries during our 15-year operating history, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. We provide LNG to customers in diverse end markets, including the industrial, energy, mining, utility, pipeline, commercial, and high horsepower transportation markets. Our customers use LNG as an alternative to traditional fuel sources, such as distillate fuel oil and propane, to lower fuel costs and reduce harmful environmental emissions. Our customers also use LNG as a “virtual pipeline” solution when natural gas pipelines are not available or are curtailed. To learn more, visit www.stabilisenergy.com.
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ materially from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “anticipate”, “can”, “believes,” “expects,” “could,” “could be,” “will,” “will be,” “plan,” “may,” “should,” “predicts,” “potential” and similar expressions are intended to identify such forward-looking statements.
Such forward-looking statements relate to future events or future performance, but reflect the parties’ current beliefs, based on information currently available. Most of these factors are outside the parties’ control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the future performance of Stabilis, future demand for and price of LNG, availability and price of natural gas, compliance with environmental and other regulations, the availability and cost of capital, unexpected costs, and general economic conditions.
The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in our Prospectus filed with the Securities and Exchange Commission on November 8, 2019 and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I of our most recent quarterly report on Form 10‐Q, as updated in our subsequent quarterly reports on Form 10‐Q and annual reports on Form 10‐K, which are available on the SEC’s website at www.sec.gov or on the Investors section of our website at www.stabilisenergy.com. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters attributable to Stabilis, or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
Stabilis does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Stabilis Contact – Mexico LNG Sales:
Francisco Fuentes Carus
Mexico Sales & Business Development
01 800 266 3749
Stabilis Contact – Investor Relations:
Chief Financial Officer
SOURCE: Stabilis Energy
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