LNG set for Eagle Ford shale

Oct. 2, 2013 at 8:16 AM

BEAUMONT, Texas, Oct. 2 (UPI) -- A division of Koch Industries said operations at its first liquefied natural gas production facility in the Eagle Ford shale play in Texas will start in 2015.

Stabilis Energy and Flint Hills Resources, a Koch Industries subsidiary, announced plans to build five LNG processors in the Texas shale play. Their joint venture aims to produce LNG for oilfield fuel applications in Eagle Ford, in southern Texas.

"Stabilis will provide our oilfield customers with a reliable source of LNG fuel that will help them reduce operating costs using a reliable domestic fuel source," Casey Crenshaw, the company's president, said in a statement Tuesday.

Texas is one of the largest oil and natural gas producers in the country thanks in part to shale fields like Eagle Ford.

Stabilis and Flint Hills said their joint venture would open the first LNG production facility for Eagle Ford by 2015.

The companies said they were in the processes of land acquisition in parts of West Texas and North Dakota, another shale leader. Production there should begin in 2015.

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