The strategic merger between United Energy LNG and Power LNG marks a significant step forward in the development of small-scale liquefied natural gas (LNG) solutions in North America. The newly formed entity, operating under United Energy LNG (UE LNG), is poised to become the nation's most advanced small-scale LNG platform, with immediate oversight of three LNG production sites in various stages of development. This merger is not just a business transaction; it's a response to the growing demand for cleaner, more accessible energy solutions in underserved markets.
UE LNG's approach focuses on modular, nimble solutions designed to meet local and regional demand, contrasting sharply with the traditional LNG development model that relies on massive investments and lengthy permitting processes. By leveraging small-scale liquefaction units and virtual pipeline logistics, UE LNG aims to bypass pipeline constraints and reduce both lead times and capital intensity. This strategy is particularly relevant for remote power generation sites, heavy-duty transportation, and industrial operations seeking lower-emission alternatives to diesel and propane.
The merger combines United Energy's upstream operating experience and public market presence with Power LNG's permitting progress and engineering capabilities. With three active development sites across Texas, Kansas, and the Gulf Coast, UE LNG is targeting a liquefaction capacity of up to 540,000 metric tons per annum (MTPA) at full deployment. The estimated capital investment for these facilities ranges between $240 and $270 million, with cash flow projections aiming for breakeven within 12 to 18 months post-commissioning.
This development comes at a time when the U.S. LNG infrastructure landscape is characterized by a significant gap. While global LNG investment nears $200 billion annually, small-scale LNG remains an overlooked frontier. UE LNG's merger is a strategic move to fill this void, offering scalable, regionally targeted solutions that promise faster project execution and cost-effective access to clean fuels. The company estimates its addressable domestic market exceeds 2 billion cubic feet equivalent annually, representing a $3+ billion opportunity in underserved sectors.
Looking ahead, UE LNG plans to reach financial close on its first three facilities by Q1 2026, with commissioning expected by Q1 2027. The company is actively engaging with feedgas suppliers, utilities, and logistics providers to build out a nationwide virtual LNG delivery network. By 2028, UE LNG aims 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. This merger is a clear indication of the shifting dynamics in the energy sector, where innovation and agility are becoming key drivers of growth and sustainability.
