HOUSTON – Stabilis Energy, a Beaumont liquefied natural gas distributor that is building several plants in South Texas, said Monday it plans to snap up U.S. storage, regasification and mobile fuel units from Canadian oil producer Encana Corp. for an undisclosed price.
Stabilis would essentially buy all U.S. assets from Encana’s Denver-based subsidiary Encana Natural Gas, which sells LNG to operators of high-horsepower engines, including oil field, mining, and rail companies. The deal is expected to close by the end of the month.
Encana’s subsidiary has “deep sector experience and strong customer relationships” that will help build Stabilis’ market share among North American high-horsepower operators, Stabilis President and CEO Casey Crenshaw said in a written statement.
Encana has been selling off natural gas assets in a bid to put more muscle believe five oil-rich regions in North America, including the Montney and the Duvernay shale plays in western Canada and the DJ Basin in Colorado. Late last month, the Canadian producer sold off its stake in Wyoming natural gas fields to Texas-based private equity firm TPG Capital, for $1.8 billion.
Stabilis wants to sell LNG to oil-field operators in the Eagle Ford Shale in South Texas, where it is planning to open its first LNG plant next January. The facility, about 210 miles southwest of Houston, is slated to be the first of five natural gas liquefiers that Stabilis plans to build with Koch Industries subsidiary Flint Hills Resources through 2017.