Second LNG liquefaction plant to be built in Odessa, likely in 2016
An LNG liquefaction facility will be built in Odessa, Texas to serve high horsepower customers in the Permian Basin oil and gas industry, according to Stabilis Energy.
TheLNG liquefaction plant will be modelled on the recently opened 100,000 gallon per day LNG liquefaction facility in George West, Texas, which is the first of five similar plants to be built as part of a joint venture between Stabilis Energy and Flint Hill Resources LLC, a leading refining, chemical and biofuels company and a subsidiary of Koch Industries.
Stabilis VP of Sales Steve Stump says the target market is drilling and completions companies looking to run straight LNG or a combination of LNG and diesel fuel.
The competitive advantage for LNG, according to Stump, is a combination of lower cost and lower impact on the environment.
“We can supply LNG at a savings to diesel. But if you use natural gas in an internal combustion engine you also have a significant reduction in emissions, both greenhouse and noxious gases,” said Stump in an interview.
TheGeorge West LNG liquefaction facility is located in the heart of the Eagle Ford Shale and is intended to serve the transportation, mining, rail, marine, asphalt and other industrial sectors, as well as oil and gas.
The facility is open for business 24 hours per day and 365 days per year, selling LNG fuel either wholesale at the plant tailgate or retail through Stabilis’ delivery service. The facility features two truck loading racks that can load two transport trailers simultaneously in less than an hour. Certified scales are provided at the truck racks. The facility has approximately 270,000 gallons of storage capacity.
“Despite recent declines in oil prices, Stabilis can provide LNG fuel that is cost competitive with diesel,” said Casey Crenshaw, CEO of Stabilis Energy.
Stabilis plans to operate the George WestLNG liquefaction plant for three months to ensure it has the best available technology. Once the plant is proved up, the company will place the order for the Odessa facility equipment and should have the new facility up and running 12 months later.
The Bakken field in North Dakota is the planned location for the third plant. Sites for the last two facilities have not been determined.
“Stabilis makes it easy for high horsepower engine operators to use LNG fuel,” said Stump. “Helping our customers simplify and optimize their LNG fueling programs is a critical part of our value proposition.”
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