IEV inaugurates CNG mother station in West Java
Saturday, January 9 2016 - 04:28 AM WIB
SGX-listed IEV Holdings Limited announced on Friday that its subsidiary, PT IEV Gas, had, on Jan. 7, 2016, successfully inaugurated the EJ-2 Compressed Natural Gas (CNG) mother station in West Java.
The EJ-2 mother station was built to compress CNG as part of the Group?s new supply chain of CNG in West Java, Indonesia, to replace EJ-1 mother station, to which there is a pending road access dispute between the Group and PT Indonesia Pelita Pratama, as announced by the company on Aug. 26, 2015.
With EJ-2 being fully operational and capable to compress 4.5 mmscfd, all compression requirements for the company?s CNG supply chain will be catered from EJ- 2. In the meantime, EJ-1 will be utilized as the maintenance, fabrication or repair and storage hub for the company?s entire CNG supply chain in West Java.
Barring any unforeseen circumstances, taking into consideration, amongst others, resolution of the earlier temporary supply disruption of CNG from EJ1 which had resulted in higher costs incurred in the supply of CNG to customers, the aforementioned shift of operations is expected to have a positive impact on the net tangible assets per share and earnings per share of the company for the current financial year ending Dec. 31, 2016.
Editing by Johannes Simbolon