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Global Energy Ventures is about to build this high-tech natural gas ship
Energy
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ASX junior Global Energy Ventures is about to build this 200 million standard cubic foot ship to transport natural gas.
Global Energy (ASX:GEV) this week showed off the ship’s design and said it was on track to deliver its first marine Compressed Natural Gas (CNG) project.
CNG is natural gas compressed for the purpose of simplified transport and storage – an alternative to liquefied natural gas (LNG). B
But sea transportation depends on having the right ship. CNG carrier technology relies on high pressure to increase the density of the gas.
“It is important to consider that 80-85% of the capital costs for each CNG project, excluding gas supply, relates to the CNG ships,” chairman and chief Maurice Brand said.
“The way the CNG ships are financed has a significant impact on shareholder value and GEV is determined to ensure the market is fully informed of the financial structures available to the company in order to provide future guidance on project valuation.”
Shares in the company reached intra-day highs of 39c on the news, trading up 4 per cent at 38c by 11am AEDT.
Now that the design is finalised, GEV will seek approval from the American Bureau of Shipping.
The first ship is expected to commence construction this year.
Global recently signed a deal with the National Iranian Gas Company for a 20-year sale and purchase of 6.85 million cubic metres of natural gas to the Port of Chabahar, Iran.
GEV plans to install compression and berthing facilities at the port, allowing CNG to be loaded on to what will be a fleet of six of the newly-designed ships to deliver 1.5 million tonnes per year to the west coast of India.
CNG marine technology is suited to both onshore and offshore reserves that cannot be produced because a pipeline solution is uneconomic or because an LNG option is too costly.
