September 10, 2026 [Storage Terminals Magazine]- Sapphire Gas Solutions has expanded its liquefied natural gas (LNG) operations in the US Southwest through the acquisition of assets from Spectrum LNG, including an operating LNG facility in Arizona and a site earmarked for future development in Oklahoma.

The transaction includes the Desert Gas LNG Plant in Ehrenberg, Arizona, as well as a site in Stroud, Oklahoma, that provides an opportunity for future expansion.

The acquisition adds LNG production capabilities to Sapphire’s existing natural gas services in the Southwest US and Southern California. It also supports the company’s strategy of developing a vertically integrated LNG platform that spans production, transportation and delivery to end users.

According to Sapphire, the deal will give the company greater control over LNG production and supply while expanding its ability to serve customers across a broader geographic footprint.

“The acquisition gives Sapphire an established LNG production base in the Southwest at a time when demand for reliable, flexible natural gas continues to grow,” said Sam Thigpen, CEO of Sapphire Gas Solutions. “The Desert Gas facility further advances our vertically integrated model, allowing Sapphire to provide customers with a more complete and unified service.”

Located near the California-Arizona border, the Desert Gas LNG Plant has approximately 100,000 gallons of LNG storage capacity and operational production capacity of around 76,000 gallons per day.

Spectrum has increased LNG deliveries to customers by more than 15 percent annually since 2021, reflecting rising demand for small-scale LNG in the region. The Desert Gas facility receives feed and fuel natural gas from TC Energy’s North Baja pipeline and supplies LNG to municipal, commercial and industrial customers.

The transaction also gives Sapphire access to additional infrastructure and potential expansion opportunities in Oklahoma.

For Spectrum LNG, the divestment comes as the company focuses on expanding its presence in Alaska. Ray Latchem, CEO of Spectrum LNG and SES Midstream, said Sapphire had been a longstanding customer of Spectrum and that the company was confident the assets would continue to serve regional markets under the new ownership.

The acquisition is part of Sapphire’s broader expansion strategy. It follows the company’s recent acquisition of EDGE LNG and a strategic partnership announced earlier in the year with Antin Infrastructure Partners, an infrastructure-focused private equity firm.

Sapphire said the Spectrum assets will strengthen its position in the Southwest and Southern California markets, where it sees opportunities to expand LNG services for municipalities, industrial customers and other users seeking alternatives to conventional energy infrastructure.

“The Southwest US and Southern California are important markets for Sapphire, and Spectrum gives us the ability to serve them with greater scale and flexibility,” Thigpen said. “Vertical integration allows Sapphire to control the molecule from production through transportation to the end customer.”

Piper Sandler & Co. served as financial adviser to Spectrum LNG, while Hall Estill LLP provided legal advice. Sapphire was advised by Orrick, Herrington & Sutcliffe LLP, with the legal team led by Joe Roger, Adam Kowis and Nick Woodruff.