Sapphire Gas Solutions acquired EDGE LNG from Blue Water Energy in a transaction that will expand its liquefied natural gas (LNG) production and distribution capacity in the United States. The acquisition includes modular assets capable of producing approximately 200,000 gallons of LNG per day. This transaction strengthens Sapphire’s strategy of controlling a larger portion of the supply chain. The company aims to directly connect LNG production to its distribution network and industrial customers requiring energy solutions in locations with limited access to conventional natural gas infrastructure.
Sapphire incorporates 200,000 gallons per day of LNG capacity
With the acquisition of EDGE LNG, Sapphire adds approximately 200,000 gallons per day of capacity, liquefaction through modular equipment currently serving customers in the southern United States. Furthermore, the acquired technology is based on modular plants mounted on skids. This configuration facilitates deployment and allows production to be adjusted according to the needs of each project. This flexibility is especially relevant for remote industrial facilities or projects where constructing pipelines and other permanent infrastructure may be complex. In this way, LNG can serve as an alternative for delivering natural gas to locations far from traditional networks.
EDGE LNG strengthens Sapphire’s vertical integration
EDGE LNG has developed solutions that cover various phases of the liquefied natural gas (LNG) chain, its operations include gas processing, liquefaction, transportation, storage, and regasification at customer facilities. Over the past eight years, the company has expanded its presence in various industrial applications. Furthermore, it relocated its operations to a central location in the Permian Basin and positioned itself among the largest mobile LNG producers in Texas.
For Sapphire, these assets represent an opportunity to reduce its reliance on external suppliers at various stages of the supply chain. Sam Thigpen, CEO of Sapphire, explained that the company aims to become a fully integrated LNG supplier. Under this model, Sapphire can manage the entire chain from production to delivery and connect the acquired assets with its existing distribution capabilities.
The acquisition also provides production assets in two regions considered strategic by the company, this distribution allows Sapphire to bring production closer to its existing markets and increase the flexibility of its operations.
Antin supports the expansion of Sapphire Gas Solutions
The purchase of EDGE LNG this is also part of Antin Infrastructure Partners’ investment strategy in Sapphire. The French private equity firm previously acquired the company from Apollo. Antin believes that the growth in commercial and industrial electricity consumption and the expansion of data centers are increasing the need for energy solutions installed directly at the point of consumption.
In this context, Sapphire’s mobile compressed natural gas (CNG) and LNG solutions aim to serve facilities where existing energy infrastructure is insufficient or requires additional alternatives. The transaction also aligns with Antin’s Flagship Fund V, endowed with €10.2 billion, equivalent to approximately $11.84 billion, according to information released by the firm. The fund invests in infrastructure companies in Europe and North America across sectors such as energy, environment, digital, and transportation.
With EDGE LNG now part of its structure, Sapphire expands its liquefaction capacity and gains control over production, distribution, and delivery. The company is thus committed to a more integrated LNG network, better adapted to the needs of industrial and energy customers in the United States.
Source: Rigzone
Photo: Shutterstock
