Stabils revealed the two-year LNG supply contract in its first-quarter results report on Wendesday, but it did not name the customer.
The LNG supply contract is scheduled to start in the first quarter of 2027.
Stabilis currently owns a liquefier that can produce more than 100,000 LNG gallons per day in George West, Texas, and a liquefier that can produce up to 30,000 LNG gallons per day in Port Allen, Louisiana.
The company is also developing the 350,000-gallon-per-day Galveston liquefaction facility.
However, Stabilis recently terminated its previously announced 10-year agreement with a “leading investment-grade global marine operator” to supply LNG from the Galveston liquefaction facility, delaying the anticipated final investment decision on the project.
The agreement included the supply of approximately 50 million gallons of LNG per year, roughly 40 percent of the facility’s planned liquefaction capacity, with minimum volume commitments of approximately 32 percent of planned capacity.
Casey Crenshaw, executive chairman and interim president and CEO, said in the quarterly report that the company remains committed to the project and is in “active discussions with potential customers on additional offtake arrangements as we continue to advance the project.”
“We continue to see substantial opportunities to create value with our existing asset base as we meet growing demand for small-scale LNG across a diverse set of end markets,” he said.
Results to improve during H2
Stabils reported revenue of $10.4 million in the first quarter, a 40.2 percent decrease compared to the first quarter of 2025.
The decrease in revenue compared to the prior year period was primarily attributable to the completion of contracts in the marine and power generation sectors, partly offset by higher commodity prices and growth in aerospace and industrial sector volumes, the company said.
Net loss for the first quarter of 2026 was $4.1 million, compared to a loss of $1.6 million in the first quarter of 2025.
When compared to the prior year period, net income reflects lower revenues, $1.5 million in vessel charter expenses associated with a marine vessel the company is in the process of subchartering, partly offset by a $2.1 million decrease in selling, general and administrative expenses, Stabilis said.
“First quarter results were expectedly soft following the completion of two long-term contracts late last year; however, our commercial progress during the quarter gives us further confidence in the earnings trajectory of the business,” Crenshaw said.
“We are building momentum in our core markets and expect results to significantly improve during the second half of 2026 as we capitalize on strong demand for our small-scale LNG and delivery solutions,” he said.
“Demand remains robust in our aerospace and industrial markets, where we saw strong year-over-year growth in aerospace revenues in the first quarter,” continued Crenshaw.
“We are also finalizing several commercial opportunities, including additional behind-the-meter solutions for data centers that we expect to commence in the second quarter of this year. As we prepare for these and the ramp-up of our large data center contract in early 2027, we believe we are well positioned to serve this attractive market, which aligns closely with our LNG logistics, delivery and service capabilities,” he said.
