The strategic merger between United Energy LNG and Power LNG marks a significant development in the energy sector, creating a scalable small-scale LNG platform designed to serve industrial, power, and transport markets across North America. The newly formed entity, operating under United Energy LNG (UE LNG), now oversees a portfolio of three LNG production sites in advanced stages of development, with projects in Houston, Texas, and Independence, Kansas, among others.
This merger is pivotal as it focuses on modular, nimble solutions to deliver LNG to underserved markets, contrasting with the traditional LNG developments that require substantial investments and lengthy permitting processes. UE LNG's approach includes small-scale liquefaction units for local and regional demand, modular deployment to reduce lead times, and virtual pipeline logistics to bypass pipeline constraints, enabling faster project execution and cost-effective access to clean fuels.
The U.S. LNG infrastructure landscape has seen significant global investment, yet small-scale LNG remains largely overlooked. UE LNG aims to fill this gap by combining United Energy’s upstream operating experience and public market presence with Power LNG’s permitting progress and engineering capabilities. The merger is expected to unlock a scalable model for delivering LNG where it's needed most, with targeted liquefaction capacity of up to 540,000 MTPA and estimated capital investment of $240–270 million across three facilities.
UE LNG's modular platform is set to serve remote power generation sites, heavy-duty transportation, marine fueling networks, and industrial operations seeking lower-emission alternatives. With plans to reach financial close on its first three facilities by Q1 2026 and commissioning by Q1 2027, UE LNG is actively engaging with feedgas suppliers, utilities, and logistics providers to build a nationwide virtual LNG delivery network. The company estimates its addressable domestic market exceeds 2 billion cubic feet equivalent annually, representing a $3+ billion opportunity in underserved sectors.
This merger not only signifies a strategic alignment of speed, innovation, and execution but also underscores the potential for small-scale LNG to play a critical role in the energy transition, offering clean, distributed power solutions across the U.S.
