| KUALA LUMPUR: IEV Energy Sdn Bhd has finalised a deal estimated to be worth US$42mil with an Indonesian private company to process and transport compressed natural gas (CNG) to industrial users around Jakarta.
The contract between IEV Energy subsidiary PT IEV Gas and PT Odira Energy Persada will span 10 years. It would be IEV Energy’s first project in Indonesia, chief executive officer Christopher Do said.
The company was currently building the plant and production was scheduled to begin in September, he told reporters after both companies signed the agreement yesterday.
“Under the first phase, we expect to produce three million standard cu ft of CNG per day. There is potential to increase the size of the plant in the future.”
Do said AmInvestment Bank would provide the financing while China-based Shijiazhuang Enric Gas Equipment Co Ltd would provide equipment for the venture.
Later this month, IEV Energy will announce its first CNG project in Vietnam in partnership with Petrovietnam.
Do said the company was still looking for opportunities in Peninsular Malaysia.
“We have been working with Gas Malaysia to identify customers which are not yet connected by pipeline. There is a shortage of gas supply in Peninsular Malaysia and once the situation is rectified, we can tap into the available market,” he added.
This year, the company’s booked revenue is over RM400mil. It expects to receive a number of CNG projects in Vietnam and Indonesia next year, which will significantly grow its orderbook to RM1.2bil.
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PT Odira Energy Persada president director Farouk Rais (left) shaking hands with Christopher Do |
Do said a possible listing of IEV Energy was on the cards, probably in 2009. However, it has not decided where to list the company.
IEV Energy provides energy to customers in Asia through the development of mobile gas infrastructure throughout the region.
It has developed the means to cost-effectively deliver containerised natural gas to areas not served by pipeline infrastructure using a range of advanced technologies to compress or liquefy natural gas.
Odira has core businesses in trading, processing and transporting of clean burning natural gas to industrial sectors and power plants. It delivers natural gas using pipelines and CNG using road trailers. |
