Universal LNG Holdings said it has acquired HEYCO LNG’s 64-acre facility in Yoakum, Texas to build the first LNG facility dedicated to the energy sector in the Southern Gulf Coast.
The plant, which is expected to be operational within 11 months, will produce 300,000 gallons of LNG a day, with the potential to expand to more than 800,000/day, the company revealed in a statement.
Details of the acquisition remained undisclosed.
Domestic LNG production has the potential to reduce the cost of oil and gas production in the U.S. by an estimated 20 percent per barrel, a savings that could relieve a strained domestic energy industry, Universal LNG said.
In the coming months, the company intends to name an oil and gas operator client to receive LNG produced at the plant.
The Yoakum plant is also expected to supply liquefied natural gas to Universal’s LNG tractor-trailer trucks fleet.
The company also plans to use its active export license to supply LNG to Mexico, and is eying possible facilities on the East Coast, the Dakotas and Africa.
Image: Universal LNG