Stabilis Solutions receives award of long-term marine bunkering agreement

Stabilis Solutions has announced a significant 10-year agreement with a prominent global marine operator to supply liquefied natural gas (LNG) for marine bunkering at the Port of Galveston. This contract marks a pivotal step in the company’s expansion plans along the Texas Gulf Coast, facilitating the development of a new LNG liquefaction facility.

Details of the Agreement and Future Plans

The newly signed agreement will see Stabilis provide approximately 50 million gallons (or 188,000 m³) of LNG annually for marine bunkering operations at the Port of Galveston. Deliveries are projected to commence in the fourth quarter of 2027, contingent upon successful financing and construction of the new LNG facility. Stabilis is tasked with finalizing project financing by the first quarter of 2026 and completing construction by the second quarter of 2028.

The planned Galveston LNG facility is designed to have a capacity of 350,000 gallons per day, significantly boosting Stabilis’ overall liquefaction capacity from 130,000 gallons per day at its existing facilities to 480,000 gallons per day. This strategic expansion aims to serve not only cruise customers but also various marine markets, including container ships, car carriers, tankers, and bulk carriers operating in the Port of Galveston, Port of Houston, and surrounding Gulf Coast regions. The bunkering agreement is expected to account for around 40% of the facility’s planned capacity, providing a crucial anchor contract to propel the project forward.

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In conjunction with the new LNG facility, Stabilis plans to introduce a dedicated Jones Act-compliant LNG bunkering vessel. This vessel will facilitate the direct transport of LNG from the facility to customer vessels, creating a comprehensive last-mile delivery solution. The company has already identified a site for the facility and completed initial front-end engineering design (FEED) activities, with expectations to secure financing and commence construction in early 2026.

Company Insights and Future Prospects

Casey Crenshaw, Executive Chairman and Interim President & CEO of Stabilis, emphasized the significance of this agreement, describing it as a transformative milestone that secures the commercial scale necessary for expanding liquefaction capacity on the Gulf Coast. He noted that once operational, the Galveston LNG facility will be the company’s largest liquefaction plant, enhancing its market presence and meeting the increasing demand for clean marine LNG fueling solutions.

Crenshaw also highlighted ongoing discussions with a diverse range of customers interested in sourcing LNG from the new facility. The long-term bunkering agreement not only secures a substantial portion of the planned capacity but also positions Stabilis favorably as it seeks to contract the remaining capacity. As the company approaches a final investment decision on the Galveston LNG facility, it remains committed to maintaining financial discipline and a value-driven approach to capital allocation, ensuring long-term benefits for both customers and shareholders.