Global Energy Ventures Ltd announced the execution of a Strategic Alliance Agreement (SAA) with Yantai CIMC Raffles Offshore, Ltd (CIMC) and Shijiazhuang Enric Gas Equipment Co. Ltd (ENRIC) to develop an EPC Wrap across the CNG transportation chain.
- Strategic Alliance Agreement (SAA) executed with Yantai CIMC Raffles Offshore Limited (CIMC) and Shijiazhuang Enric Gas Equipment Co. Ltd (ENRIC).
- Parties will jointly co-operate and work together to develop CNG transport projects across target regions.
- GEV and CIMC entered into a Letter of Intent (LOI) dated 30 June 2019 to progress a firm 4 ship (and option for additional 4 ships) shipbuilding EPC contract for the construction of GEV’s CNG Optimum ships.
- ENRIC is part of the CIMC Group of companies, listed in Hong Kong (Market Cap USD 1.2 billion), specialising in the design, development, manufacturing, engineering and sales of CNG/LNG/LPG transport and storage equipment, and the provision of technical maintenance solution services for CNG compression station/terminals, CNG Carrier cargo containment, and loading/offloading facilities, LNG Plant, LNG regasification stations.
- Under the SAA, the parties will develop an EPC Contract with CIMC and ENRIC for the construction and commissioning of all other related CNG project facilities and related infrastructure “EPC Wrap”.
- Implementation of an integrated EPC wrap across the full CNG transport chain will mitigate the areas of critical project execution risk, such as delivery and pricing, to assist in the financing of GEV’s future CNG projects.
Executive Chairman and CEO Maurice Brand commented: “Under the SAA, CIMC and ENRIC will now look at providing GEV with an “EPC Wrap” for the construction and commissioning of all related CNG project facilities and related infrastructure (entire CNG value chain – “pipe to pipe“). We consider an integrated “EPC wrap” arrangement will mitigate the areas of critical project execution risk, such as delivery and pricing, to assist in the financing of GEV’s future CNG projects. GEV’s focus on mitigating execution risks will ensure our projects can efficiently move to Financial Close. In CIMC and ENRIC, GEV has selected two world class partners to deliver our maiden CNG transport project.
Under the Strategic Alliance agreement, the parties will also utilise their respective expertise and contacts to jointly evaluate CNG Project opportunities with the objective being to achieve financial close for each CNG Project opportunity.”
GEV previously announced a LOI with CIMC on 3 July 2019 to progress a shipbuilding EPC contract for the construction of a firm 4 ships (and option for additional 4 ships) by CIMC at their yard in China on the terms and conditions outlined. There are no changes to the terms of the LOI. In addition to the shipbuilding LOI, CIMC and ENRIC together have the expertise to provide EPC services for all key components of a marine CNG project development including gas pipelines, CNG compression facilities, CNG ship loading and receiving terminals, CNG ships, and related CNG project infrastructure. GEV, CIMC and ENRIC will now work together to develop a single EPC Wrap to cover the full CNG transport chain (loading/shipping/unloading).
Image source: Courtesy of GEV
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