Australian compressed natural gas (CNG) company Global Energy Ventures (GEV) has extended a letter of intent (LOI) with CIMC Raffles for the construction of up to eight CNG carriers to June 30.
The LOI, entered by GEV and CIMC Raffles in July last year, is based on firm order for four 200 mmscf CNG carriers and options to build additional four.
The contract price range is between $135m-140m per ship and the construction period of the first ship is 30 months.
GEV said it continues to work towards a binding shipbuilding EPC contract with the shipyard.
“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,” said Maurice Brand, executive chairman and CEO of GEV.
In December, GEV commenced its first CNG commercialisation plan to work with the operator of in-development oil field located offshore Braziian Pre-Salt to jointly explore CNG opportunities.