Global Energy Ventures Ltd has extended a Letter of Intent (LOI) with CIMC Raffles to build the CNG Optimum 200 ships as well as CIMC Enric Holdings Ltd. The extension is for six months through to 31 December 2020. The LOI is based on a firm order for four (4) 200MMscf Compressed Natural Gas (CNG) ships with the option for GEV to order up to an additional four ships. The parties have executed the LOI, with the intention of entering a Shipbuilding Engineering, Procurement & Construction (EPC) contract, employing GEV’s CNG Optimum design.
- Letter of Intent (LOI) with Yantai CIMC Raffles Offshore Limited (CIMC Raffles) to build the CNG Optimum 200MMscf ships extended to 31 December 2020.
- Strategic Alliance with CIMC Enric Holdings Ltd also extended to 31 December 2020.
- No change to the contract price range of USD 135-140 million per ship for the base Port to Port designed CNG Optimum ship.
- Delivery schedule of 30 months remains for all CNG Optimum ship configurations.
- CIMC Raffles continue to play an important technical role in the commercialisation of the Company’s CNG Optimum ship. This included the recently completed Brazil Commercialisation Plan, that required incorporating a STL shipboard system (see Figure 1) to the CNG Optimum ship to enable offshore mooring and gas loading capability.
- GEV and CIMC Raffles Group continue to work on process engineering and areas of detailed design for the entire CNG supply chain as part of the announced Strategic Alliance. This work includes our due diligence on the potential for an offshore CNG Export facility, located in the US Gulf of Mexico, which will be based on the SAL gas system also depicted in the figure below.
Executive Chairman and CEO Maurice Brand commented: “GEV is delighted to further extend the Shipyard LOI with CIMC Raffles through to the end of 2020. During the past six months our project teams have worked closely with the team at CIMC Raffles to complete important marine engineering work on our priority projects in Brazil and the US. This work has taken the base design of the CNG Optimum ship and qualified new designs to include two additional methods for loading gas offshore. These are the STL and SAL gas loading systems shown in figure 1. This work has put the Company into a strong position to secure our first project CNG project for multiple applications including Brazil and the US.”
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