GE Oil & Gas has agreed to acquire Salof Companies, a
designer of small-scale LNG technologies based in Schertz,
Texas, officials confirmed on Friday.
Privately-held Salof is known for its cryogenic plant design
and fabrication for small LNG and CO2 applications. GE, a
leader in large-scale LNG technologies, said it recently
launched LNG solutions with a significantly smaller footprint
and capacity that are complementary to Salofs offerings.
Adding Salof to the portfolio will add additional capabilities
and manufacturing footprint, according to the company, while
Salof can draw upon GEs breadth and global operations.
The transaction is subject to customary closing conditions,
including regulatory approval.
In North America, the demand for small-scale LNG production is
growing as vast new discoveries of natural gas are making it
cost-efficient to use cleaner burning natural gas for
transportation, fleet management, marine and other industrial
The technologies can encourage the transition of long-haul
trucks and locomotives from diesel fuel to LNG, contribute to
emissions reduction, capture flare
gas at drilling sites and landfills and help eliminate the need
for costly pipeline infrastructure in remote areas, according
to GE officials.
Additionally, small-scale LNG technology is employed to develop
export terminal infrastructure for LNG.
This move is not only good for GE and Salof, it also will
provide more options for customers around the world as they
look for new ways to cut both emissions and costs by using cleaner
burning natural gas, said Daniel C. Heintzelman, CEO
of GE Oil & Gas.
Salof has deep small LNG expertise, a strong track record
of high-caliber projects and a highly talented
workforce," he added. "This acquisition expands our
strategic footprint in the US, and Salofs Texas site has
the potential to be a GE Oil & Gas manufacturing and
packaging center of excellence for small LNG
Small LNG solutions typically offer customers a cost-effective
standard or modular, plug-and-play solution. They can be
located in remote areas, industrial sites or even highway
fueling stations. Depending on the design, they can be moved
and redeployed as needed.
GE is well known for its expertise in managing complex
global projects, developing manufacturing
efficiency and for having a world-class sales and service
team, said David Gordon, president of Salof Companies.
Joining GE lets Salof focus on what it does best --
developing and producing great LNG technologie -- while
simultaneously growing our business globally. It is an exciting
move that will have a significant impact on the future of the
small-scale LNG industry.
Salof has nearly 200 employees located at its Schertz
manufacturing facility. Together with the US acquisition, GE
will acquire a 50% ownership interest in Beijing enCryo
Engineering Co., a Beijing-based joint venture with Beijing
Maison Engineering Co. that has been a reliable partner with
the Salof Companies for projects in China and elsewhere.