Sapphire Gas Solutions acquires EDGE LNG

EDGE LNG’s service area. Sapphire Gas Solutions, a leading provider of distributed energy infrastructure, announced the acquisition of EDGE LNG from affiliates of Blue Water Energy.

Sapphire Gas Solutions has acquired EDGE LNG from affiliates of Blue Water Energy, expanding its distributed LNG business with approximately 200,000 gal/day of liquefaction capacity.

The acquisition adds EDGE’s modular LNG production equipment to Sapphire’s existing transportation, storage and distribution operations. Texas-based EDGE provides liquefaction, delivery and vaporization services using modular and mobile LNG equipment, with its liquefaction assets currently serving customers in the southern United States.

Financial terms of the transaction were not disclosed.

Sapphire said the acquisition advances its strategy of developing a vertically integrated LNG supply business capable of controlling natural gas supply from production through transportation and delivery to the customer.

“This acquisition progresses Sapphire’s strategy to be a fully integrated LNG supplier for our customers,” said Sam Thigpen, CEO of Sapphire Gas Solutions. “By controlling the supply chain from production through delivery, we can provide true vertical integration and a more complete, unified service.”

Thigpen said bringing more of the LNG supply chain under Sapphire’s control would reduce its reliance on third-party providers while increasing flexibility and accountability to customers.

EDGE uses modular, skid-mounted liquefaction plants designed for rapid deployment and scalable production. The systems can provide LNG in areas where pipeline natural gas infrastructure is unavailable or where existing infrastructure cannot meet customer requirements.

The equipment can be deployed to adjust LNG production capacity as customer demand changes, an approach aimed particularly at distributed energy applications requiring fuel supplies outside conventional pipeline networks.

“Demand for distributed energy is growing rapidly, particularly in markets where customers need reliable power and traditional infrastructure cannot keep pace,” Thigpen said. “The acquisition gives us production assets in two strategically important regions allowing us to connect those assets directly to our distribution capabilities and customers.”

Sapphire provides compressed natural gas (CNG), LNG and renewable natural gas (RNG) services for utility, commercial and industrial customers. The Conroe, Texas-based company operates in 30 states and serves more than 120 customers.

Its infrastructure includes natural gas production, transportation, storage and distribution assets, with mobile gas systems used to deliver fuel where permanent infrastructure is unavailable or insufficient.

EDGE had been owned by affiliates of Blue Water Energy. Salil Oberoi, partner at Blue Water Energy, said EDGE was established as one of the early LNG distributors of its type in the United States.

“EDGE is a natural fit within Sapphire’s suite of turnkey gas supply solutions, and we are confident the business will continue to support and accelerate the company’s growth,” Oberoi said.

The transaction follows Sapphire’s recently announced strategic partnership with infrastructure-focused private equity firm Antin Infrastructure Partners.