Malaysia's IEV Energy, Odira Energy sign US$42m deal to supply CNG

IEV Energy Sdn Bhd through its subsidiary PT IEV Gas has finalized a deal estimated to be worth US$42mil with Indonesian firm PT Odira Energy Persada to process and transport compressed natural gas (CNG) to industrial users around Jakarta.

 

The contract 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 Tuesday in Kuala Lumpur.

 

“Under the first phase, we expect to produce three million standard cubic feet of CNG per day. There is potential to increase the size of the plant in the future.” Do said as quoted by Malaysian newspaper.

 

AmInvestment Bank would provide the financing while China-based Shijiazhuang Enric Gas Equipment Co Ltd would provide equipment for the venture, he added.

 

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. (*)