Global Energy Ventures Ltd (ASX:GEV) has shortlisted four shipyards to begin negotiations for contracts to build its unique CNG 200 Optimum ships to transport compressed natural gas (CNG).
This follows completion of the extensive prototype testing of the CNG 200 Optimum design and after reviewing the status of its CNG project portfolio.
The four shipyards have the technical capability to construct the vessels and presented proposals which are capable of meeting GEV pricing and schedule objectives.
Marine project consultants appointed
GEV has also appointed SeaQuest Marine Project Management Ltd to provide consultancy services to assist in finalising the technical specification and plan approval with the selected yard(s).
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Chairman and CEO Maurice Brand said, “We are delighted with the four shipyards we have selected as well as the appointment of SeaQuest to assist the GEV shipping team, led by GEV director Jens Martin Jensen, to move forward in 2019 on the development of our CNG project portfolio.”
The shortlisting by GEV, a leading developer of global integrated CNG projects, follows extensive discussions with almost 20 shipyards during 2018.
Initial four ship order proposed
During the first quarter of 2019, the GEV team and consultants will finalise all technical and commercial discussions as well as schedules.
These discussions will be based on a firm four ship order and options for a further 2+2 CNG 200 Optimum ships.
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SeaQuest Marine provides ship owners, ship managers and maritime stakeholders with consultancy services having delivered 260 ships over 16 years, with a further 18 ships under construction.
The CNG Optimum 200 ship carries 140 kilometres of pipe, which is the single largest cost item for each ship.
Pipe procurement consultant selected
Sourcing of this pipe is a specialised business and a Japanese group has been selected by GEV, subject to formal agreements, to provide pipe procurement consultancy services.
The initial scope of services covers selection of mills, line pipe technical specification, pricing and delivery scheduling.
Clarksons provides broker services
Clarksons Platou continues to provide GEV with shipbroking services, structuring and financial advice.
GEV stresses that it may elect to:
- Build, own and operate its CNG ships, using normal project financing; or
- Lease the CNG ships from a third party under an annual operating cost basis.