Oz GEV, China's CIMIC Sign LoI for CNG Carriers

Marine CNG project developer Global Energy Ventures (GEV) has executed a letter of intent (LoI) with Chinese shipyard Yantai CIMC Raffles Offshore to build up to eight CNG Optimum 200 ships, it said July 3.

The LoI is based on a firm order for four CNG ships with the option to order up to an additional four ships, Australia-based GEV said. The company’s CNG Optimum 200 ship design has received approval from the American Bureau of Shipping (ABS).

CIMC Raffles has provided a contract price range of $135-140mn subject to the final terms of the shipbuilding contract being finalised, GEV said.

“The final contract price will be mutually agreed by both parties and recorded in the shipbuilding contract before its execution. Payment terms are aligned with standard milestones for new ship builds. The major terms of a shipbuilding contract, including a final contract price, payment terms, scope of supply, and delivery date, are subject to further discussion and agreement by both parties and once mutually agreed shall be included in the final shipbuilding contract,” it said.