HL Acquisitions to Acquire Chi Energie Singapore

Nasdaq-listed hydrogen logistics solutions provider, HL Acquisitions, has agreed to acquire modular LNG business, Chi Energie Singapore, from Sila Energy Holding, HL said December 17.

Chi, through a local joint venture partnership, is developing a modular LNG business to supply the remote power, oil field service and transportation sectors in Oman. Following the transaction, Chi will become a wholly-owned subsidiary of HL, with Chi’s founder and CEO, Ajay Khandelwal, who is also a director of HL, becoming HL’s CEO.

HL’s CEO Jeffrey Schwarz said that LNG is now widely available at prices that represent a significant discount to the cost of petroleum-derived fuels like diesel and gasoline. He, however, said that it is a challenge to cost-effectively bring LNG to downstream users, in power generation, as well as industrial and commercial applications.

“Chi, along with its JV partners, have engineered an innovative and highly modular solution to do just that. Its inaugural project in Oman, which we expect will generate significant free cash flow, will serve as a platform upon which to build a major global player in modular LNG logistics and distribution,” Schwarz said.

The transaction is expected to close late first quarter/early second quarter of 2020, HL said.