GEV announces extension of shipyard LoI & project update
Global Energy Ventures Ltd (ASX: GEV, the Company), the leading developer of global integrated marine compressed natural gas (CNG) projects, announced an extension of our a Letter of Intent (LOI) with Yantai CIMC Raffles Offshore, Ltd (‘CIMC Raffles’) to build the CNG Optimum 200 ships. The extension is for six months through to 30 June2020.The LOI is based ona firm order for four (4) 200MMscf Compressed Natural Gas (CNG) shipswith the option for GEV to order up to an additional four (4) ships. The parties have executed theLOI, with the intention of entering a Shipbuilding Engineering, Procurement & Construction(EPC) contract, employing GEV’s CNG Optimum design, GEV said in its press release.
Key highlights:
- Six month extension to the Letter of Intent (LOI) with Yantai CIMC Raffles Offshore Limited (CIMC Raffles) to build the CNG Optimum 200MMscf ship.
- No change to the contract price range of USD 135-140 million per shipor delivery schedule of 30 months for the first ship.
- GEV and CIMC Raffles continue towork towards a binding shipbuildingEngineering, Procurement & Construction (EPC) contract, employing GEV’s CNG Optimum design, for four (4) firm CNG Optimum ships, with the option for GEV to order up to an addition four (4) ships.
- GEV and CIMC Raffles Group also jointly working on process engineering and areas of detailed design for the entire CNG supply chain as part of the recently announced Strategic Alliance.
- CNG Commercialisation Study now underway for an in-development offshore field in the Pre-salt Brazil, with scheduled completion in March 2020.
- Due Diligence continues to define a proposal for anew CNG export project from the US Gulf Coast to Mexico and other markets in the Caribbean.
Executive Chairman and CEO Maurice Brand commented: “GEV is delighted to be working with theCIMC Raffles group of companies as we progress a number of CNG project opportunities. The extension of the LOI with no change to the terms is a strong endorsement of the quality of our projects and progress being made by our team.”
GEV would also like to thank all shareholders and advisors for their support of the Company during 2019. Management remainconfident in the commercialisation of the CNG Optimum ship together with our “pipe to pipe” gas transport model which continues to gain momentum in the Brazil offshore gas market with the first CNG Commercialisation Study due for completion in the March quarter 2020. Our due diligence on the recently announced US Gulf Coast offshore export facility is nearing completion and we expect to make an update early in the current quarter.”
CIMC Raffles has a successful track record of delivering in excess of USD 6 Billion in EPC contracts since 2012, experience with CNG systems, and moving forward, their scale of operations with three yards will support our growth aspirations of multiple CNG projects requiring shipbuilding contracts.