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UPDATE 1-Encana unit to sell US assets to Stabilis Energy
April 14, 2014 / 12:01 PM / 4 years ago

UPDATE 1-Encana unit to sell US assets to Stabilis Energy

(Adds details from statement, background)

April 14 (Reuters) - Liquid natural gas supplier Stabilis Energy said on Monday it would buy most of the U.S. assets of Encana Natural Gas Inc, a unit of Canada’s Encana Corp, for an undisclosed price.

Encana, Canada’s largest natural gas producer, has been shedding assets under Chief Executive Doug Suttles, who wants the company to cut its dependence on natural gas, prices of which have slumped after a shale boom in the United States.

Encana is focusing on shale fields that are rich in oil and natural-gas liquids such as Montney in British Columbia and Duvernay in Alberta.

Encana Natural Gas distributes LNG to engine operators in the oilfield, mining, rail, marine, road and industrial sectors.

The deal is expected to close on April 30, privately owned Stabilis said.

Stabilis, which also supplies LNG to the oil drilling and production industry in North America, plans to open its first LNG production plant in George West, Texas, in January 2015 to service customers in the Eagle Ford shale.

The George West plant will be able to produce about 100,000 LNG gallons per day when complete, Stabilis said.

Stabilis will also continue to source fuel from Encana Natural Gas’s existing third-party supply network. (Reporting by Ashutosh Pandey and Sneha Banerjee in Bangalore; Editing by Kirti Pandey and Saumyadeb Chakrabarty)

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