Stabilis Solutions plans to make a final investment decision by the end of the first quarter of 2026 on a proposed Galveston LNG liquefaction facility and bunker vessel project. The company has secured 56% of planned capacity but confirmed a key marine customer will not extend its fueling contract.
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Stabilis Solutions said it plans to make a final investment decision by the end of the first quarter of 2026 on its proposed Galveston liquefaction facility and a Jones Act-compliant LNG bunkering vessel, even as a cruise ship customer declines to renew its fueling contract.
The publicly traded energy provider said it has secured customer commitments covering about 56% of the project’s planned 350,000 gallons-per-day capacity. The total capital cost is estimated to be between $350 million and $400 million.
In a business update, the company said it is in “late-stage discussions with multiple potential customers” for the remaining offtake capacity.
“Financing for the project is progressing with counterparties conducting detailed due diligence and active negotiations on definitive documentation and key commercial terms,” Stabilis said.
The update follows the expiration of two multi-year customer contracts in the fourth quarter. One involved truck-to-vessel LNG marine bunkering services in Galveston. Stabilis did not name the customer, but market analyst Javier Garcia Fernandez reported that Carnival Corp. declined to exercise a two-year extension option on its LNG supply agreement.
As a result, the 2,200-cubic-meter LNG bunker vessel Clean Jacksonville, built in 2018, has returned to Jacksonville, according to the analyst. The 5,374-berth Carnival Jubilee, delivered in 2023 and previously fueled with LNG in Galveston, has reverted to conventional fuel.
Stabilis confirmed the marine customer “elected not to extend the agreement due to the unavailability of suitable Jones Act-compliant LNG bunker vessels during the contemplated extension period.”
The marine bunkering contract represented 32% of the company’s projected 2025 revenues, underscoring the financial impact of the nonrenewal.
Stabilis said it is pursuing replacement work and expects to redeploy assets and personnel in 2026.
Executive Chairman and interim President and CEO Casey Crenshaw described 2026 as a “transition year” for the company.
“Looking ahead, 2027 is shaping up to be a historic year for Stabilis,” Crenshaw said, citing existing contract commitments and expectations that the Galveston LNG facility could be operational by the end of 2027.
The company expects to release its fourth-quarter 2025 results on March 4. Stabilis estimates a net loss of $300,000 to $500,000 on revenues of $13 million to $13.5 million.
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