Global Energy Ventures Ltd has extended its 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 June 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 (4) 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.


  • 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 ship or delivery schedule of 30 months for the first ship.
  • GEV and CIMC Raffles continue to work towards a binding shipbuilding Engineering, 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 a new 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 the CIMC 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 remain confident 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.”


On 2 December 2019 GEV announced the commencement of our first CNG Commercialisation Plan to work with the operator of in-development oil field located in the offshore Brazilian Pre-Salt to jointly validate that the CNG opportunity displays suitable technical viability and commercial value to each participant. GEV is pleased to update shareholders that work commenced during December 2019 with the respective technical and commercial teams. Work will recommence in the first week of January in order to meet the delivery timeline of March 2020. GEV management continue to progress additional opportunities with international oil companies located in the Brazil market for the use of a CNG gas transport solution.

The Commercialisation Plan is for a selected in-development oil field with associated gas is situated in the Santos Basin, Brazil, approximately 200km from Rio de Janeiro and 350 km from Brazil’s largest city, Sao Paulo.  First oil and gas production are expected in late 2023 via a Floating Production, Storage and Offloading (FPSO) vessel, designed for up to 8.5 million m3 (300MMscf) of natural gas per day. A Financial Investment Decision and awarding of contracts for this development is scheduled for the later part of 2020.


On 28 October 2019 GEV announced the proposal for a US gas export project using CNG Optimum to transport gas to regional markets that include Mexico, Central America and the Caribbean. Due diligence continues to progress the proposal for an existing offshore platform as the export facility connected to existing network of underutilised pipelines serving producers in and near the Gulf of Mexico. Technical due diligence has now confirmed the preferred site for this facility, with management now engaged with parties for the supply and offtake of gas that would also provide credit support. The initial capacity for this facility will be for the supply of 200MMscf/d (or 80bcf/year or 1.5Mtpa LNG equivalent). GEV will update shareholders during the March 2020 quarter including: the location of the selected platform; permitting timelines; indicative on-water costs for export gas and investment grade parties to support the supply and offtake of gas.

Image source: Courtesy of GEV, Image Caption: Proposed CNG Gas Transport Project up to 350km for onshore gas markets, less than a day’s sailing distance

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