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GALVESTON, TX - Aug. 3, 2021 - Galveston Wharves at Port of Galveston (the “Port”) and Stabilis Solutions Inc. (“Stabilis”) (NASDAQ:SLNG), a leading provider of energy transition services, including liquefied natural gas (“LNG”) and hydrogen fueling solutions, have entered into a Memorandum of Understanding (“MOU”) to facilitate the use of LNG as a marine fuel at the Port.
Under the terms of the MOU, the Port and Stabilis will work together to provide turnkey LNG fueling solutions to marine vessels calling on the Port, including identifying suitable dock space for shore-to-ship fueling operations, obtaining the necessary permits and approvals, identifying and educating potential customers, and executing LNG fueling events. Stabilis will deploy its existing fleet of mobile cryogenic assets, including LNG transportation and distribution equipment, and provide LNG from its liquefaction facilities in Texas and Louisiana to support LNG fueling operations. LNG bunkering services are expected to be available in 2021.
“Stabilis is proud to partner with the Galveston Wharves on this LNG marine bunkering opportunity,” said Jim Reddinger, President and CEO of Stabilis. “The use of LNG as a marine fuel is critical for marine operators to reduce their emissions profile, and Stabilis is building a North American network of LNG bunkering locations to provide this critical service to our marine customers. The Port of Galveston is the second LNG marine fueling location (along with the Port of Corpus Christi) that Stabilis will operate on the Gulf Coast. As our marine customers pursue their environmental, commercial, and operational goals in the energy transition, Stabilis will be there to support them.”
The number of LNG-powered vessels in the world fleet is growing rapidly as LNG fuel benefits marine customers in both efficiency and emissions reductions compared to conventional marine fuels. According to DNV, demand for LNG as a marine fuel is projected to grow from approximately 1.0 million tons per annum (“mtpa”) in 2020 to nearly 4.0 mtpa by 2024, a compound annual growth rate of over 30 percent. With this partnership providing LNG fuel and services, Stabilis and the Galveston Wharves hope to attract more LNG-fueled vessels and to encourage additional conversions to LNG fuel. Stabilis and the Galveston Wharves have committed to providing extensive education and technical support to potential customers.
“The Galveston Wharves views LNG fueling of marine vessels as an important step in our commitment to environmental stewardship,” said Rodger Rees, Port Director and CEO. “And with the number of LNG-fueled vessels in the global fleet growing rapidly, having LNG fueling services in the port is also an important step in our commercial growth. We look forward to working with Stabilis on this project.”
About Galveston Wharves at Port of Galveston
Perfectly situated at the entrance to Galveston Bay and the Houston Ship Channel, the Port of Galveston has been a thriving maritime commercial center since 1825. Just 45 minutes from open seas, the 840-acre port has infrastructure and assets to serve growing cruise, cargo, and commercial businesses. As the fourth most popular cruise port in North America, the Port of Galveston welcomed more than 1.0 million cruise passengers in 2019. Also one of the busiest ports in Texas, the port moved 4.3 million tons of cargo in 2020 and has an estimated annual state economic impact of $2.1 billion. To learn more, visit portofgalveston.com.
Stabilis Solutions, Inc. is a vertically integrated energy transition company that provides clean energy solutions to our customers. Our solutions include small-scale liquefied natural gas (“LNG”) production, distribution and fueling services to multiple end markets in North America. Stabilis also provides hydrogen fueling services to its customers. Stabilis has safely delivered over 250 million gallons of LNG through more than 25,000 truck deliveries during its 16-year operating history in the LNG industry, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. Stabilis’ customers use LNG and hydrogen as a fuel source in a variety of applications in the industrial, energy, mining, utilities and pipelines, commercial, and high horsepower transportation markets. Stabilis’ customers use LNG and hydrogen as alternatives to traditional fuel sources, such as distillate fuel oil and propane, to lower fuel costs and reduce harmful environmental emissions. Stabilis’ customers also use LNG as a “virtual pipeline” solution when natural gas pipelines are not available, or volumes are curtailed. To learn more, visit www.stabilis-solutions.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “can”, “believes,” “expects,” “could,” “will,” “plan,” “may,” “should,” “predicts,” “potential” and similar expressions are intended to identify such forward-looking statements.
Such forward-looking statements relate to future events or future performance, but reflect the parties’ current beliefs, based on information currently available. Most of these factors are outside the parties’ control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the future performance of Stabilis, future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions.
The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in our quarterly reports on Form 10‐Q and annual reports on Form 10‐K, which are available on the SEC’s website at www.sec.gov or on the Investors section of our website at www.stabilis-solutions.com. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters attributable to Stabilis, or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
Stabilis does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.