By JIM POLSON
Stabilis Energy, the closely-held company proposing to build
five liquefied natural gas (LNG) facilities
with Koch Industries,
agreed to buy most of Encana's US LNG business for an
The sale includes Encana Natural Gass storage and
regasification trailers, mobile fueling units and other
equipment, Beaumont, Texas-based Stabilis said in a statement
on Monday. It will also add staff from the unit, which sells
LNG to the oil, rail, marine and trucking industries.
The deal is expected to close by the end of the month,
Stabilis plans to open a plant next year in West Texas that
will produce 100,000 gal/day of LNG for companies drilling in
the Eagle Ford oil field. Another four plants have been
proposed under a joint venture announced in September with
closely held Koch Industries Flint Hills Resources.
Oil producers need the fuel for engines used in hydraulic
fracturing, a technique that blasts cracks in petroleum
bearing rock by injecting water, sand and chemicals
underground. Other uses for LNG include fueling heavy-duty
trucks and railroads.
Encana, based in Calgary, has been selling assets as it
shifts to more oil production from gas.