Leveraging strong demand for LNG as marine fuel, U.S. clean fuel producer and provider Stabilis Solutions is finalizing plans to build a dedicated LNG bunkering facility along the U.S. Gulf Coast.
In addition to preparing the final investment decision on the LNG bunkering facility, the company said it was in discussion with several potential marine customers in strategic ports across the U.S. for further expansion.
The company revealed the plans in its second quarter results announcement, reporting a record adjusted EBITDA of $2.1 million – an increase of $2.2 million on a year-over-year basis.
As revealed, the improvement of $2.2 million in net income was also underpinned by strong demand and higher utilization at its Texas liquefaction plant which led to a year-over-year increase of 45.3% in LNG volumes delivered.
During the quarter, the company initiated the phased expansion of storage capacity at the Texas facility to further bolster its inland LNG supply chain to address increased demand and provide redundancy for its business as it expands its infrastructure to the Gulf Coast waterfront.
Stabilis also highlighted the execution of a fueling contract with Carnival Corporation , which began late in the fourth quarter of 2023.
Another milestone from the second quarter of 2024 included Stabilis’ 14-month contract extension of an LNG supply agreement for primary power generation. The company noted it will continue to further expand its operations with the expectation to deliver more than 235,000 megawatts of energy in 2024 to peak load, intermittent, distributed, and emergency relief power customers across multiple industries.
“We delivered strong second quarter results due to the ongoing efforts of our entire team to transition our company into one of North America’s largest providers of liquefied natural gas fueling, production, storage, and last mile delivery solutions,” said Westy Ballard , President and Chief Executive Officer.
“These efforts have optimized our existing operations and resulted in longer-term customer relationships, higher asset utilization, more predictable cash flows, improved liquidity, and a healthier leverage profile.
“Moving forward, we remain focused on leveraging our proven business model to further develop and deliver a portfolio of opportunities across our marine, commercial and industrial business platforms.”