Global Energy Ventures Limited (ASX: GEV) is involved in the energy sector; developing, building and operating the compressed natural gas projects, which are optimal for the CNG commercialization and generates bankable cash flow with strategic investments in upstream gas resources.
The company today, on 9th May 2019, published its Corporate Presentation and discussed the business updates.
The CNG project portfolio of the company is aligned to the growth in global gas demand. It is important to know that the established pipeline of regional projects is driven by growth in gas demand, stranded gas resources or associated gas resources. The projects are currently undergoing feasibility to demonstrate that marine CNG is a viable alternative to LNG or FLNG. The commercialisation of CNG Optimum through a maiden project FID decision and ownership in stranded gas resources will commence in 2019.
All technical and safety approvals are completed and ready to be commercialised for CNG Optimum ship. The company finalised the specification with three shipyards and has selected two preferred shipyards to finalise the capital cost and construction schedule in 2Q 2019, which is expected to be construction ready by mid-2019.
Global Energy Ventures has a scalable 'PIPE–TO–PIPE' gas transport business model. The CNG Optimum shipping capability is designed for regional gas transportation solutions that are economically competitive with alternative transport options for a given volume and distance. GEV will target projects, where it can develop and implement a full CNG gas transport supply chain. The CNG project opportunities that GEV is and continues to develop using the CNG Optimum ship generally fall into one of the four categories of Marine CNG Transportation Service, Stranded Gas Fields, Oil Fields with Associated Gas and Remote Small-Scale Power Generation.
As per the International Energy Agency’s World Energy Outlook Report published in November 2018, gas will overtake coal as the world's second-largest energy source by 2030. China, the world's biggest oil and coal importer, now became the largest importer of gas as well.
China had increased LNG volumes by 41% year-on-year in 2018. Driven by the fast-tracking CO2 emission controls, the market is switching from coal to gas with continued economic growth. The government policy intends to increase gas usage to 10% of the country's energy mix by 2020 and 15% by 2030.
Emerging Asian economies share of LNG imports will double to 60% by 2040 and they will account for half of the total global gas demand growth. India has also doubled the gas usage to 15%, which is an increase of more than 300% in the volumes of imported gas required (21 mtpa in 2017 to plus 70 mtpa). Pakistan expects the country's LNG demand to more than triple in the next three to five years to 25-30 mtpa.
On the price-performance front, the stock of Global Energy Ventures Limited was trading flat at $0.210, during the day's trade with a market capitalisation of ~$75.35 million (AEST: 03:30 PM, 9 May 2019). The stock has yielded a YTD return of 20.0%, with returns of 23.53% and 13.51% over the past three months and one-month period, respectively. Its 52-week high price stands at $0.330 and a 52-week low price at $0.130, with an average trading volume of 200,906.
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