Stabilis scraps 10-year Galveston LNG offtake deal amid financing hurdles

This deal would have accounted for around 40% of the planned facility’s 350,000 gallon-per-day capacity, with minimum volume commitments of about 32%.

IMAGE: Aerial view of Port of Galveston, Texas. Getty Images 

US-based fuel supplier, Stabilis Solutions, has terminated a previously announced 10-year LNG offtake agreement tied to its proposed Galveston liquefaction facility, the company said.

The deal was signed in October last year, with a global marine operator and covered the supply of approximately 50 million gallons of LNG per year.

The agreement remained contingent on the financing, construction, and commissioning of the Galveston plant.

During project financing discussions, prospective lenders sought changes to the contract terms that were not accepted by the counterparty, prompting Stabilis to terminate the agreement.

The facility was previously scheduled to come online in the fourth quarter of 2027, though this timeline is now expected to be pushed back.

By Gautamee Hazarika

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