IEV secures major CNG supply award

By Romel S. Gurky

SGX-listed IEV Holdings Limited, a provider of integrated engineering solutions (IES) and clean energy solutions, announced Friday that its subsidiary PT IEV GAS has received a formal 5-year Gas Sales Agreement (GSA) from IDX-listed PT Ultrajaya Milk Industry Tbk to supply compressed natural gas (CNG) to its manufacturing plant in West Java, Indonesia.

Pursuant to the GSA, PT Ultrajaya will purchase more than 500,000 million metric British thermal units (mmbtu) of CNG, assuming the minimum off-take is eighty-five percent (85%) of the total contracted units of CNG.

PT Ultrajaya is the leading producer of aseptic dairy products, beverages and healthy drink products with UHT (Ultra High Temperature) Technology and aseptic packaging. More than ninety percent (90%) of the PT Ultrajaya?s total production volume is sold domestically throughout Indonesia, while the remainder is exported to various countries in Asia, Europe and The Middle East, as well as Australia and The United States of America. The manufacturing division of PT Ultrajaya is located approximately 100km from PT IEV Gas? CNG processing plant in Cikarang, West Java, Indonesia.

President and CEO of IEV, Christopher Do, commented ?This GSA is another important step towards the transformation of our CNG business model in Indonesia, from throughput to direct sales, which allows better control of feed gas sources and the market, as well as our business margins.?

Barring any unforeseen circumstances, the revenue from this GSA, which is in excess of US$8 million (assuming the minimum off-take and minimum contract price), is expected to contribute to the group?s financial performance over the 5-year period from October 2013 to September 2018, the company said.

Editing by Reiner Simanjuntak