GEV has secured a Middle East Gas Supply & Chabahar Port Access for CNG into India
Global Energy Ventures has executed a Heads of Agreement with the National Iranian Gas Company (NIGC) for a 20-year sale and purchase of 6.85 million m3 of natural gas (~240 MMscf/d) to the Port of Chabahar, Iran.
Additionally, GEV has signed a Memorandum of Understanding with the General Directorate of Sistan & Balochestan (PMO, the Port Authority at Chabahar). GEV and PMO are working together to enter into a binding 20-year termed Port Agreement for the use of a CNG Berth Location.
GEV Chairman & CEO, Maurice Brand
With the gas supply HOA signed with NIGC and now a signed MOU with PMO (Port Authority), GEV has clear line of sight to source gas and by installing the required CNG loading equipment and facilities, thereby the ability to transport marine CNG to the Indian market.
GEV fully expects the project to expand from the initial 240 MMscf/d volume to over 650 MMscf/d in the future, allowing GEV to supply an equivalent of ~5.0 million tonnes per annum of LNG from the Port of Chabahar to India by way of marine CNG.
GEV is continuing to progress gas offtake agreements with Indian gas customers and to secure a site on the west coast of India for its CNG Import Terminal (to unload the CNG and connect into the Indian national gas pipeline grid/system). GEV expects to execute such agreements during the second quarter 2018.
- GEV’s proprietary CNG Optimum 200 ships will be used to deliver gas (~1.5 mtpa of LNG equivalent) to the west coast of India.
- GEV plans to install compression and berthing facilities at the Port of Chabahar providing direct access to the Oman Sea.
- NIGC are currently constructing a gas pipeline connecting the existing IGAT-7 pipeline to the Port of Chabahar, with completion scheduled for 2019. The Port of Chabahar also has a Free Trade Zone that offers extensive concessions to foreign investors.
- India has committed USD $500M for the expansion of capacity at the Port of Chabahar & remains Iran’s 2nd largest buyer of energy resources.