Applied LNG received a $22.5 million loan to construct a liquefier to process liquid natural gas in Midlothian, Texas, the company announced Monday.
The Westlake Village alternative energy company partnered with Texas Capital Bank, a subsidiary of Texas Capital Bancshares Inc., in Dallas, on the loan.
Applied LNG is constructing the first of six liquefiers on 31 acres it purchased at the RailPort Business Park in Midlothian, just south of Dallas-Fort Worth. The processing station is expected to be completed by the middle of the year, as the Business Journal reported in December.
The Midlothian plant will allow Applied LNG to reach customers in the South, Midwest and even the Eastern seaboard. The company currently serves the Southern California market from the two liquefiers in Topock, Ariz., on the California border.
A single LNG liquefier operated by the company has capacity to process 86,000 gallons a day, which is a typical small-scale commercial LNG plant.
“We are delighted to partner with Texas Capital Bank to complete this financing on attractive terms which we believe is a testament to the financial and operational stability of our company and its tremendous growth potential,” said Applied LNG Chief Executive Cem Hacioglu in a prepared statement.
Applied LNG operates a fleet of 49 delivery trucks, the second largest in the industry, after Clean Energy Fuels, a wholesaler and retailer in natural gas in Newport Beach is owned by oil-and-gas tycoon T. Boone Pickens.
The fleet, dispatched from a company logistics facility in Fontana, serves customers that include the Orange County Transportation Authority, Speedy Fuel Inc. stations at the ports of Los Angeles and Long Beach, waste hauler Waste Management Inc., rental truck provider Ryder System Inc. and Occidental Petroleum.