Expected to have a capacity of approximately 100,000 gallons per day, the LNG facility will serve high horsepower oilfield fuel applications in the Permian Basin in West Texas.
The facility, which is subject to receiving final approval from management of both companies, is scheduled to commence production in 2016.
Stabilis Energy president and CEO Casey Crenshaw said: "Stabilis strives to provide oilfield engine operators with a reliable source of LNG fuel that helps reduce costs and improves environmental performance.
"The West Texas facility will complement our existing operations in South Texas and provide our customers with a complete LNG fuel solution across the region."
"We believe our deep understanding of oilfield service needs, along with our dedicated LNG production, distribution and service resources, will make the Stabilis and Flint Hills Resources joint venture the leading turn-key supplier of LNG to the oilfield market."
Stabilis and Flint Hills have established a joint venture intended to build five LNG liquefiers to serve oilfield fuel consumers. The first LNG production facility is located in George West, Texas.
