SLNG · Stabilis Solutions, Inc.

Stabilis Solutions, through its wholly-owned subsidiary Stabilis GDS, ended a significant long-term offtake agreement that was critical for the Galveston LNG liquefaction facility's viability. The 10-year deal with a leading investment-grade global marine operator was structured to provide approximately 50 million gallons of LNG annually, equating to 40% of the facility's planned 350,000 gallon-per-day capacity, with minimum commitments covering 32%. This termination stemmed directly from financing challenges: prospective lenders required modifications to the agreement terms, which the counterparty refused, prompting the company to walk away to advance project financing. The immediate investor impact is delays across the project timeline, including the final investment decision (FID), securing financing, and overall development. While the company remains committed to the facility and is actively negotiating alternative offtake deals, the loss of this anchor customer introduces execution risk and could prolong capital deployment. Investors should monitor progress on new agreements, as sufficient offtake is explicitly noted as necessary for FID amid broader risks like construction delays and regulatory hurdles highlighted in the forward-looking statements.