Encore's Gulf Coast Power Play: Acquisition Reshapes Gas Compression

Encore's Gulf Coast Power Play: Acquisition Reshapes Gas Compression

Encore Oilfield Services acquires Custom Compression Systems, securing a massive facility and a key engine partnership to dominate the booming gas market.

2 days ago

Encore's Gulf Coast Power Play: Acquisition Reshapes Gas Compression

NEW IBERIA, LA – January 06, 2026 – Encore Oilfield Services, LLC has executed a significant strategic maneuver with its acquisition of Custom Compression Systems, LLC, a move that substantially expands its manufacturing power and solidifies its position in the competitive natural gas compression market. The deal not only brings a massive fabrication facility under Encore's control but also establishes a critical engine supply partnership, positioning the company to capitalize on surging demand for natural gas infrastructure along the U.S. Gulf Coast and beyond.

The acquisition of the New Iberia-based company, formerly known as Williamson Production Systems, LLC and a subsidiary of Louisiana Machinery Company (Louisiana Cat), marks a pivotal moment for Encore. It signals an aggressive growth strategy focused on vertical integration and enhanced service delivery in an industry where reliability and scale are paramount.

“We are incredibly excited to welcome the Custom Compression Systems team into the Encore family,” said John R. Simonetti Jr., President and CEO at Encore Oilfield Services, in a statement accompanying the announcement. “With the expansion of our facilities, the addition of substantial new horsepower, and our Ariel distributorship, we’re positioned to deliver even more robust and reliable compression solutions to our clients.”

A Strategic Footprint on the Gulf Coast

At the heart of the acquisition is a state-of-the-art manufacturing plant strategically located in the Port of Iberia. The facility adds an impressive 103,000 square feet of large-scale manufacturing space to Encore’s portfolio. It is purpose-built for heavy industrial fabrication, equipped with two 80-ton overhead cranes and soaring 70-foot eave heights, enabling the construction and assembly of the largest and most complex gas compression packages.

The location itself is a significant asset. The Port of Iberia is a vital industrial artery for the energy sector, providing direct, unimpeded deep-water access to the Gulf of Mexico. This prime positioning is ideal for serving deep-water oil and gas exploration and production activities. The port is an established intermodal hub, with on-site rail access and proximity to the future I-49 corridor, facilitating efficient logistics for both raw materials and finished products. With over 100 companies contributing to a local economic impact of $1.4 billion, the port is a cornerstone of Louisiana's energy economy, and Encore's expanded presence reinforces this role.

The acquired facility, with its more than 1,100 feet of bulkhead, enhances Encore's ability to fabricate and ship large-scale modules, aligning with the industry trend toward more complex, pre-packaged systems that reduce on-site construction time and costs for clients.

Forging Powerful Supply Chain Alliances

Beyond the physical assets, the deal fundamentally strengthens Encore's supply chain through two key partnerships. A landmark agreement with Louisiana Cat, the state's authorized Caterpillar dealer since 1933, secures 225,000 horsepower of Caterpillar natural gas engines for Encore's compression packaging operations. This partnership guarantees a reliable and substantial supply of high-demand power units, mitigating potential supply chain bottlenecks and ensuring consistent project delivery.

Louisiana Cat’s deep expertise and its ISO 9001 certified Power Systems headquarters, also located within the Port of Iberia, provide a layer of quality assurance and technical support that is invaluable in the high-stakes energy sector. This collaboration leverages the strengths of both companies, combining Encore's packaging expertise with Caterpillar's world-renowned engine technology.

Simultaneously, Encore will continue its role as a distributor for Ariel Corporation products. Ariel is a dominant force in the reciprocating gas compressor market, with its equipment being a standard for reliability in midstream and upstream applications. By maintaining this distributorship alongside the new Caterpillar engine partnership, Encore can offer a comprehensive and versatile product line. This dual-brand capability allows the company to cater to a wider range of customer specifications and preferences, making it a more flexible and competitive player in the market.

Fueling a High-Demand Energy Market

This expansion comes at a critical time for the energy industry. The global natural gas compressor market is on a robust growth trajectory, with forecasts projecting its value to climb from approximately $5.57 billion in 2024 to over $8.3 billion by 2032. This growth is propelled by escalating global demand for natural gas as a cleaner bridge fuel and the rapid expansion of related infrastructure.

The United States, as the world's largest natural gas producer and leading LNG supplier, is at the epicenter of this trend. North America currently dominates the compressor market, driven by extensive shale gas exploration and the build-out of pipelines and LNG export terminals. Encore's newly fortified position on the Louisiana Gulf Coast places it directly in the path of this growth, ready to supply the critical compression equipment needed to move gas from production fields to processing plants, pipelines, and international markets.

The acquisition is not just a corporate milestone but also a significant investment in the regional economy of Iberia Parish, which relies heavily on the oil and gas industry. The expansion promises to bolster the local industrial base, supporting the approximately 5,000 jobs tied to the Port of Iberia and reinforcing Louisiana's status as a national leader in energy infrastructure and fabrication. As the market continues to consolidate and demand for efficient, reliable energy solutions grows, Encore's strategic acquisition and integrated approach have firmly established it as a formidable force in the future of natural gas compression.

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