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Global Energy Ventures extends LOI with construction partner of CNG Optimum 200 ships

No change to the contract price range of USD 135-140 million per ship or delivery schedule of 30 months for the first ship.

Global Energy Ventures Ltd - Global Energy Ventures extends LOI with construction partner of CNG Optimum 200 ships
GEV and CIMC Raffles working towards a binding shipbuilding Engineering, Procurement & Construction (EPC) contract

Global Energy Ventures Ltd (ASX:GEV) has extended its Letter of Intent (LOI) with CIMC Raffles to build the CNG Optimum 200 ships.

The extension is for six months through to June 30, 2020.

The LOI is based on a firm order for four 200 MMscf (million standard cubic feet) 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.

CIMC Raffles is one of China’s leading offshore builders dedicated to specialised projects with the full support of three shipyards, including the main yard Yantai, where the CNG ships are planned to be built.

The company has a successful track record of delivering in excess of USD 6 Billion in EPC contracts since 2012 and experience with CNG systems.

CIMC Raffle’s Yantai shipbuilding construction base in China

GEV executive chairman and CEO Maurice Brand said: “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.”

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