Flint Hills Resources in joint venture to build LNG plants

Flint Hills Resources, a unit of Koch Industries, has signed a joint agreement with Stabilis Energy of Beaumont, Texas, to acquire property in Odessa, Texas, to build a liquefied natural gas plant, their second together.

The plant is expected to have a capacity of about 100,000 gallons per day and would serve oilfield operators in the Permian Basin of west Texas.

The Odessa LNG liquefaction facility is subject to final approval from management at both companies. If approved, construction would begin early next year and production would begin in 2016.

The joint venture’s first LNG production facility is scheduled to open in January 2015 in George West, Texas. That 100,000-gallon-per-day facility will produce LNG for customers in the Eagle Ford Shale.

A year ago, the two companies announced the joint venture to build up to five LNG liquefiers serving oilfield fuel consumers. In addition to the first two plants in Texas, the venture is pursuing site in North Dakota and other domestic oilfield markets.