Sapphire Gas Solutions has acquired the Desert Gas LNG Plant in Ehrenberg, AZ, US, and a site for future expansion in Stroud, OK, US, from Spectrum LNG. With these acquisitions, Sapphire Gas expands its natural gas services for its Southwest US and Southern California clients by adding LNG production capabilities to its owned assets.
The Desert Gas LNG Plant has around 100,000 gallons (379m3) of LNG storage and a daily production capacity of approximately 76,000 gallons (288m3). The facility gets feed and fuel natural gas from the North Baja pipeline, and supplies LNG to local commercial, municipal and industrial clients.
Sam Thigpen, CEO of Sapphire Gas Solutions, says: ‘Spectrum gives Sapphire an established LNG production base in the Southwest at a time when demand for reliable, flexible natural gas continues to grow. The Desert Gas facility further advances our vertically integrated model, allowing Sapphire to provide customers with a more complete and unified service. Bringing production capabilities into Sapphire’s portfolio strengthens our position in the region and gives us a strong foundation for continued growth. The Southwest US and Southern California are important markets for Sapphire, and Spectrum gives us the ability to serve it with greater scale and flexibility. We see significant opportunity to build on Spectrum’s existing relationships and expand LNG solutions for municipalities, industrial customers and other users looking for dependable alternatives to traditional energy infrastructure. Vertical integration allows Sapphire to control the molecule from production through transportation to the end customer.’
Ray Latchem, CEO of Spectrum LNG and SES Midstream, comments: ‘This transaction comes at a strategic time for Spectrum as we expand our footprint in Alaska. Sam and the Sapphire team have been a customer of Spectrum for a long time, and we are confident that integrating these assets into the great platform of Sapphire will provide a top-tier service and product to the regional markets near Ehrenberg.’
