Sapphire Gas Solutions said Tuesday that it had acquired assets owned by small-scale liquefied natural gas producer Spectrum LNG, expanding its LNG production capacity and operations across the southwestern US.
The acquisition includes the operating Desert Gas LNG Plant in Ehrenberg, Arizona, and a site in Stroud, Oklahoma, intended for future expansion. Financial terms of the transaction were not disclosed.
The Desert Gas facility, located near the California-Arizona border, has about 100,000 gallons of LNG storage capacity and operational production capacity of roughly 76,000 gallons per day.
The facility receives feed and fuel natural gas from TC Energy's North Baja pipeline and supplies LNG to municipal, commercial and industrial customers in the region. Spectrum has increased LNG deliveries to customers by more than 15% annually since 2021, according to the company's statement.
Sapphire said the transaction adds LNG production capabilities to its existing natural gas services in the Southwest and Southern California and gives the company greater control over production and supply as it builds a vertically integrated LNG platform.
"The Desert Gas facility further advances our vertically integrated model allowing Sapphire to provide customers with a more complete and unified service," the company's CEO Sam Thigpen said.
The Oklahoma assets provide additional infrastructure and opportunities for future expansion, the company said.
The deal follows Sapphire's recent acquisition of EDGE LNG and a strategic partnership earlier this year with infrastructure-focused private equity firm Antin Infrastructure Partners.