Stabilis Solutions terminates 10-year LNG supply deal, expects delay in Galveston project
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by Admin
Clean energy production solutions provider Stabilis Solutions (Stabilis) on Tuesday (31 March) said it has terminated a previously announced 10-year agreement with a leading investment-grade global marine operator to supply Liquefied Natural Gas (LNG) from the company’s proposed 350,000 gallon-per-day Galveston liquefaction facility.
The agreement contemplated the supply of approximately 50 million gallons of LNG per year, representing roughly 40% of the facility’s planned liquefaction capacity, with minimum volume commitments of approximately 32% of planned capacity.
The agreement was subject to, among other things, the successful financing, construction, and commissioning of the proposed Galveston LNG liquefaction facility.
“The decision to terminate the agreement was made in connection with the company’s ongoing efforts to secure third party project financing for the Galveston LNG facility,” Stabilis said in a SEC filing.
“During negotiations with prospective financing partners, the company was requested to modify certain provisions of the agreement as a condition to completing project financing. The counterparty did not agree to the proposed modifications, and the company elected to terminate the agreement.”
As a result, the company expects delays to the anticipated final investment decision, project financing, and development timeline for the Galveston LNG facility.
“The company continues to pursue the development of the facility and is engaged in discussions with potential customers regarding alternative offtake arrangements,” it added.
Manifold Times previously reported Stabilis entering into a 10-year agreement with an investment-grade global marine operator to LNG for their marine bunkering operations at the Port of Galveston.
With the construction of its new LNG facility, Stabilis also plans to commission a dedicated Jones Act-compliant LNG bunkering vessel to serve the Port of Galveston. This vessel will transport LNG from the facility directly to waterborne customer vessels.
Together, the new LNG facility and bunkering vessel are expected to create a fully integrated, last-mile LNG delivery solution for customers.
Related: Stabilis Solutions enters 10-year LNG bunkering supply deal for Port of Galveston
Photo credit: Port of Galveston
Published: 7 April, 2026
