Stabilis Solutions has terminated a long-term LNG offtake agreement linked to its planned Galveston liquefaction facility in Texas, according to a recent SEC filing.
The deal, signed via its subsidiary Stabilis GDS, Inc., was for the supply of about 50 million gallons of LNG per year to a global marine operator.
That volume would have accounted for roughly 40% of the proposed plant’s 350,000-gallon-per-day capacity, with minimum commitments estimated at around 32%.
The agreement had been contingent on the successful financing, construction and commissioning of the Galveston facility.
Stabilis said the termination forms part of its ongoing efforts to secure third-party funding for the project. During talks with potential financiers, the company was asked to amend certain terms of the agreement as a condition for investment.
However, the counterparty declined to accept the proposed revisions, leading Stabilis to end the agreement.
