GE Oil & Gas (NYSE: GE) today announced that it has completed its acquisition of substantially all of the assets of the Salof Companies, a designer and manufacturer of small–scale liquefied natural gas (LNG) technologies based in Schertz, Texas. The move positions GE for growth in the small LNG sector.
Salof is an industry leader in cryogenic plant design and fabrication for small LNG and CO2 applications. GE, already active in large-scale LNG technologies, recently launched LNG solutions with a significantly smaller footprint and capacity that are complementary to Salof’s offerings.
“Adding Salof to our portfolio expands our capabilities and manufacturing footprint in the small LNG space, while Salof can draw upon GE’s breadth and global operations, positioning both companies for growth in this sector,” said Daniel C. Heintzelman, president and CEO, GE Oil & Gas. “The acquisition also provides more options for customers around the world as they look for new ways to cut both emissions and costs by using cleaner burning natural gas.”
In North America, the demand for small-scale LNG production is growing as vast new discoveries of natural gas are making it cost-efficient to use cleaner burning natural gas for transportation, fleet management, marine and other industrial uses. Small LNG solutions typically offer customers a cost-effective standard or modular, plug-and-play solution. Depending on the design, they can be moved and redeployed as needed.
Salof has nearly 200 employees located at its Schertz, Texas, manufacturing facility. Additionally, Salof receives engineering support through Beijing enCryo Engineering Co., Ltd., a Beijing-based joint venture controlled by Beijing Maison Engineering Co., Ltd. GE has entered into an agreement to acquire a 50 percent ownership interest in the joint venture, subject to customary closing approvals.