U.S. private energy company Stabilis Energy has signed a definitive agreement to purchase substantially all of the national assets of Encana Natural Gas Inc. (ENGI). Denver-based ENGI is a leading distributor of liquefied natural gas (LNG) fuel to domestic high horsepower engine operators in the oilfield, mining, rail, marine, over the road transportation, and industrial sectors. ENGI is a subsidiary of Encana Corporation.
“We are proud to announce the addition of Encana Natural Gas Inc.’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.
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.
After the transaction closes, Stabilis Energy will operate one of the largest cryogenic rolling stock fleets in North America across 20 states and multiple end markets, including oilfield, mining, rail, marine, and general industrial. Senior management teams from both organizations will assume leadership positions with Stabilis Energy.
The transaction is scheduled to close on April 30, 2014. Terms of the transaction were not disclosed.
(Source: Stabilis Energy)