Chart Industries, Inc. and Stabilis Energy, Inc. have closed their previously announced transaction on Friday, August 30, 2019. Chart Industries, Inc. (Chart) announced the strategic investment in Stabilis at the beginning of August this year and now owns 8.75% of the outstanding common shares of Stabilis, bringing new strength to the regional LNG fuel market.
“We welcome Chart as a new shareholder and appreciate Chart’s confidence in Stabilis and the small-scale LNG market,” commented James Reddinger, President and Chief Executive Officer of Stabilis. “We anticipate that the transaction will increase our publicly traded float and total shares outstanding and will thereby facilitate our ability to meet our Nasdaq listing requirements. The transaction also will reduce our financial leverage and give us a stronger balance sheet to support our growth plans.”
Small-scale LNG is a key aspect of the global LNG infrastructure buildout, as these smaller liquefaction plants serve specific uses such as marine bunkering, fuel for over the road transport, gas-LDC peak storage and power generation. Stabilis and Chart together built a 100,000 LNG gallon per day liquefier in Texas, with the intended purpose to service multiple end markets, including energy, industrial, mining, and Mexican exports. Chart supplied the liquefaction train, storage, gas pre-treatment, and truck loading facilities, which contributed to the record production levels of the plant.
“We are pleased to complete this strategic investment in Stabilis Energy,” said Jill Evanko, Chief Executive Officer of Chart. “We look forward to providing equipment and process to Stabilis and other customers as they expand in the small-scale and utility-scale LNG market. We expect over $650 million of opportunity in this market for our products in the next three years.”