Universal LNG Holdings Inc. acquired HEYCO LNG's 64-acre facility in Yoakum, Texas, to build the first LNG facility dedicated to the energy sector in the Southern Gulf Coast, the company said Oct. 20. Details of the acquisition are undisclosed.
The plant, which is expected to be operational in 11 months, will produce 300,000 gallons of LNG a day and could produce more than 800,000 gallons per day.
Domestic LNG production, coupled with several key initiatives, could reduce the cost of oil and gas per barrel produced in the U.S. by 20% per barrel, the company said. Universal LNG said small- and mid-scale LNG plants are critical regional diesel displacement solutions.
Universal and CMI, with CMI affiliate California Cartage, will partner to reduce costs on proppant, frack sand and water treatment. Canada-based Reservoir Silicates will partner with Universal to provide proppant/frack sand and treatment of post-frack water, Universal said.
The Yoakum plant will provide LNG to a client Universal will name in coming months, and also to Universal’s tractor-trailer trucks. Universal also said it would send LNG to Mexico through its active export license.
The company said it is considering placing facilities on the East Coast and in North and South Dakota.
Universal LNG Holdings Inc. is based in Houston.
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