IEV enters into natural gas supply deal in RI
Friday, July 24 2015 - 01:40 AM WIB
SGX-listed IEV Holdings Limited said it has successfully secured a feed gas source through a gas supply agreement entered with PT Rabana Gasindo Makmur.
The company said in a statement Thursday that pursuant to the supply agreement and based on an agreed off-take of 80 percent, the company has secured a total of 2.7 MMBTU of feed gas worth approximately US$23 million, to be supplied by PT Rabana over a 40-month period commencing in the fourth quarter of 2015.
?The signing of the supply agreement is an important strategy implemented by the Group to secure a large and long term ?gas bank? to cater to its current and future consumers in West Java, Indonesia. Through the supply agreement, the group is also able to secure feed gas at a competitive price, allowing us to compete effectively in the Indonesian compressed natural gas market,? said IEV Holdings President and CEO, Christopher Do in the statement.
The company said that the signing of the supply agreement is expected to contribute positively to its financial performance during the tenure of the agreement and hence, is expected to have in a positive impact on the net tangible assets per share and earnings per share of the company for the current financial year ending December 31, 2015.
The company said none of the directors or controlling shareholders of the company has any interest, direct or indirect, in the supply agreement. The directors are also not aware of any substantial shareholders that have any interest, direct or indirect, in the supply agreement.
Editing by Reiner Simanjuntak