Houston-based small-scale LNG player Stabilis Solutions has extended its liquefied natural gas supply deal with an unidentified provider of on-demand industrial power solutions.
The firm did not reveal the name of the buyer in a statement issued on Tuesday.
Under the terms of Stabilis’ supply agreement extension, Stabilis will provide turnkey production and last mile delivery of up to 9.5 million gallons of LNG to generate roughly 23 megawatt-hours of grid resiliency power in support of communities along the Gulf Coast through June 2025, it said.
Like marine bunkering and aerospace, power generation represents a “significant” growth sector for Stabilis.
In 2023, Stabilis delivered LNG to generate about 236,000 megawatts of energy to the power generation sector, representing 25 percent of total revenue.
Stabilis anticipates that “future demand for its behind-the-meter power solutions will be driven by significant growth within the data center, manufacturing, and broader industrial sectors, together with weather-related and emergency relief events,” it said.
Westy Ballard, president and CEO of Stabilis said domestic energy consumption is expected to “increase materially over the next decade, placing increased stress on the U.S. electrical grid.”
“We believe our heritage as a last-mile provider of on-demand and redundant power solutions that sit beyond the service scope of traditional energy infrastructure will become increasingly more important in the years ahead,” he said.
LNG demand for US space industry and vessel bunkering
Stabilis currently owns a liquefier that can produce up to 100,000 LNG gallons per day in George West, Texas and a liquefier that can produce up to 30,000 LNG gallons per day in Port Allen, Louisiana.
It also buys LNG from third-party production sources, which allows the firm to support its customers in markets where it does not own liquefaction plants, and it owns a fleet of cryogenic trailers to transport and deliver LNG.
The firm recently said it expects a significant demand rise for LNG fuel from the US commercial space launch market.
The company’s total sales volumes of LNG to aerospace customers amounted to about 3.4 million gallons in 2023, or 6.8 percent of Stabilis’ total sales volumes.
In 2024, the company expects its aerospace market-related volumes will increase by more than 40 percent over the prior year, representing about 10 percent of its full-year sales volumes.
Besides rocket fuel, Stabiilis in October last year secured a contract from cruise operator Carnival to provide LNG fuel for the latter’s vessel Carnival Jubilee.
Under the deal, Stabilis said it will supply firm LNG deliveries on a ratable basis from its small liquefaction facility in Texas over the two-year contract.