Stabilis Energy announces transactions to enhance LNG and CNG capabilities in Mexico
 

   Stabilis Energy, Inc. announced two strategic transactions that will expand its presence in the distributed liquefied natural gas (LNG) and compressed natural gas (CNG) markets in Mexico. Stabilis has completed the acquisition of privately held Diversenergy, LLC and its subsidiaries to create one of the leading distributed LNG marketing and distribution companies in Mexico. In addition, Stabilis has completed the formation of a joint venture with Grupo CLISA and other former owners of Diversenergy to pursue investments in LNG and CNG assets in Mexico.

   As one of the leading providers of LNG marketing and distribution services in Mexico, Diversenergy provides LNG to customers that use LNG as a fuel in mobile high horsepower applications and to customers that do not have natural gas pipeline access. As a result of the acquisition, Diversenergy and its Mexican subsidiary have become wholly owned subsidiaries of Stabilis. The transaction was structured as an equity purchase with Diversenergy’s owners receiving cash and Stabilis common stock consideration.

   In addition, Stabilis has formed a joint venture with CryoMex Investment Group LLC to pursue investments in distributed natural gas production and distribution assets in Mexico. CryoMex is led by Grupo CLISA, a Monterrey, Mexico-based developer and operator of businesses in multiple end markets including energy.

   The Joint Venture, operating as Energía Superior Gas Natural LLC, plans to invest in LNG and CNG production, transportation, storage, and regasification assets that serve multiple end markets throughout Mexico, including the industrial, mining, pipeline, utility, marine, and over-the-road transportation markets.

   The Joint Venture plans to begin immediately evaluating LNG and CNG asset development opportunities throughout Mexico, including in the Monterrey, Sonora, and Mexico City regions. These assets could include LNG liquefaction facilities, cryogenic rolling stock equipment, CNG compression stations, and pressurized rolling stock equipment, among others.