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Global Energy Ventures granted US approval for ship construction

The company is a developer of global integrated compressed natural gas (CNG) projects.
CNG 200 Optimum ship
The CNG 200 Optimum ship transports compressed natural gas (CNG)

Global Energy Ventures Ltd (ASX:GEV) has received formal approval from the American Bureau of Shipping (ABS) for construction of the CNG 200 Optimum ship.

This approval of the CNG-O-200 design follows the completion in December 2018 of the extensive work program.

The company will continue to work with ABS throughout the final engineering and construction phases.

Notably, this approval will materially assist negotiations with the four shortlisted shipyards, and accelerate the development of the company’s other CNG projects in 2019.

READ: Global Energy Ventures shortlists four shipyards to build CNG 200 Optimum vessels

GEV’s chairman and CEO Maurice Brand said: “The timely review and granting of the letter of approval by ABS for the CNG 200 Optimum ship is the culmination of three years of focused dedication and effort by the GEV Canada team.

“This is a major milestone for GEV as without this approval, GEV would be unable to move forward with the construction of its CNG Optimum ship and achieve a Final Investment Decision (FID) for its first CNG project.

Final investment decision in 2019 is main objective

“Delivering FID is the company’s main objective in 2019.

“Shareholders are reminded that 80% to 85% of the capital cost for each CNG project is the ship, which can be used for each of the project opportunities being pursued.

“The balance of the capital cost is the CNG ship loading which is dependent on location, but indicative 10% of the capital cost, and the unloading cost is much lower at around 5% of capital cost, again depending on location and associated infrastructure.

“The GEV business model is to offer a “pipe to pipe” gas solution for its customers.”

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