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.”