Stabilis to Buy Encana's U.S. LNG Fueling Assets
Stabilis Energy, the closely held company proposing to build five liquefied natural gas facilities with Koch Industries Inc., agreed to buy most of Encana Corp. (ECA)’s U.S. LNG business for an undisclosed amount.
The sale includes Encana Natural Gas’s storage and regasification trailers, mobile fueling units and other equipment, Beaumont, Texas-based Stabilis said in a statement today. It will also add staff from the unit, which sells LNG to the oil, rail, marine and trucking industries. The deal is expected to close by the end of the month, Stabilis said.
Stabilis plans to open a plant next year in West Texas that will produce 100,000 gallons a day of LNG for companies drilling in the Eagle Ford oil field. Another four plants have been proposed under a joint venture announced in September with closely held Koch Industries’ Flint Hills Resources.
Oil producers need the fuel for engines used in hydraulic fracturing, a technique that blasts cracks in petroleum bearing rock by injecting water, sand and chemicals underground. Other uses for LNG include fueling heavy-duty trucks and railroads.
Encana, based in Calgary, has been selling assets as it shifts to more oil production from gas.
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