United Energy LNG, Power LNG to merge

A United Energy Corp. compressor station which feeds into Southern Star Gas Pipeline Company. (Image: United Energy Corp.)

United Energy LNG and Power LNG have signed a strategic merger agreement to create a new entity—United Energy LNG (UE LNG)—focused on delivering small-scale liquefied natural gas (LNG) solutions across North America. The move combines modular development capabilities with upstream experience and access to public markets, giving the new company a foothold in the largely untapped distributed LNG sector.

The newly formed UE LNG begins operations with three LNG production sites in advanced stages of development. Engineering work under the Front-End Loading Phase 1 (FEL-1) is now underway at the company’s flagship site in Houston, Texas, with a second, undisclosed location also in development. A third facility in Independence, Kansas, is scheduled to begin FEL-1 later this month.

“Our strategy departs from the mega-export model,” said Brian Guinn, Chief Executive Officer of United Energy LNG. “While the majors are focused on megaprojects, we’re deploying modular, nimble solutions that get LNG to the people and industries who need it now.”

Modular LNG approach targets inland and distributed energy needs

UE LNG’s business model centers on scalable, modular liquefaction units tailored for localized and regional demand. Designed for inland and underserved applications, the plants will use virtual pipeline logistics to bypass infrastructure bottlenecks and pipeline constraints.

This distributed approach is designed to reduce project lead times and capital intensity while addressing significant LNG access gaps in domestic markets. UE LNG is targeting users in the industrial, power generation, heavy-duty transport, and marine fueling sectors—segments that have been largely overlooked by large-scale export projects.

“Despite nearly $200 billion in global LNG investment annually, the small-scale market in the U.S. remains underdeveloped,” said Austin Terry, CEO of Power LNG. “This merger represents the alignment of speed, innovation, and execution. We’re unlocking a scalable model for delivering LNG where it’s needed most.”

Merger combines upstream and development strengths

The deal brings together United Energy’s upstream operating experience and public market presence—through its parent company United Energy Corp.—with Power LNG’s progress in permitting, engineering, and modular project deployment. The merger also strengthens the company’s pipeline of development assets and engineering partnerships.

Initial metrics from the combined portfolio include:

• Three active development sites in Texas, Kansas, and the Gulf Coast
• Target liquefaction capacity of up to 540,000 metric tonnes per annum (MTPA)
• Estimated capital investment of $240–270 million across the three facilities
• Projected breakeven 12–18 months after commissioning
• Public market access via United Energy LNG’s parent company

Market strategy and financial targets

UE LNG plans to reach financial close on its first three projects by the first quarter of 2026, with commissioning targeted for Q1 2027. The company is currently negotiating with feedgas suppliers, utilities, and logistics providers to establish a virtual delivery network that can service customers without relying on traditional pipeline infrastructure.

By focusing on small-scale liquefaction and flexible delivery models, UE LNG is aiming to capture a slice of an estimated 2 billion cubic feet equivalent annually of addressable domestic LNG demand. The company pegs the near-term market opportunity in industrial, transport, and power generation segments at more than $3 billion.

Looking ahead, UE LNG is planning to scale its operations nationally. “This is just the beginning,” said Guinn. “By 2028, we aim to operate a network of scalable LNG hubs serving a portfolio of contracted customers across the U.S., turning America’s natural gas into clean, distributed power for everyone.”