Stabilis Energy, Inc. announced two strategic transactions that will expand its presence in the distributed LNG and 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.
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.
“We see significant growth opportunities in the large and expanding market for LNG and CNG fuel in Mexico. We welcome Diversenergy to the Stabilis team and look forward to working together to bring clean, low cost, and abundant natural gas to our customers in Mexico,” said Jim Reddinger, President and CEO of Stabilis.
Lee Kellough, former CEO of Diversenergy and who will serve as President of Stabilis’ Mexican subsidiary (Diversenergy S.A.P.I. de C.V.), also commented: “We are confident that this transaction creates a solid platform for Stabilis to become a leader in the LNG and CNG markets in Mexico. We believe that we have the right combination of people, equipment, and relationships to capitalize on the substantial growth opportunities we see throughout Mexico.”
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-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.
They plan 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.
Gerardo Cavazos, CEO of Grupo CLISA added, “We share Stabilis’ view that there is vast potential for distributed natural gas solutions throughout Mexico and we believe that together we will be able to help build that market.”
Source: Stabilis Energy