- Global Energy Ventures (GEV) has begun the process of positioning a compressed natural gas (CNG) export facility on Mexican soil along the Gulf Coast
- CNG is often compared to liquified natural gas — both cleaner alternatives which cause for a reduction in carbon emissions
- GEV has said it will link the planned facility to the “Henry Hub”, a major natural gas network located in Louisiana
- The company has already commenced talks with offshore owners and operators of gas resource opportunities for markets in Mexico, Central America and the Caribbean
- Shares in GEV on the Australian market have fallen 3.13 per cent today, trading at 15.5 cents each
Global Energy Ventures (GEV) announced today it will target the natural gas market in America’s Gulf Coast.
The company has already commenced due diligence checks to draft a plan in putting a compressed natural gas (CNG) export facility on Mexican soil.
“The US has an abundance of well-priced gas and extensive network of gas transport pipelines, so it is a logical region for GEV to establish a CNG export site to market gas to attractively priced regional markets that include Mexico, Central America and Caribbean,” Executive Director Garry Triglavcanin said.
What is compressed natural gas?
Compressed natural gas is commonly compared with liquified natural (LNG), both of which are emerging markets that have seen large infrastructure upgrades world wide.
While LNG is cooled to a liquid state at around -162 degrees celsius for transport, CNG is compressed — like the name would have you expect.
Both of these alternatives show a greener solution to diesel fuels — often making a reduction in carbon emissions by 27 per cent. The only issue is that this growing market demands expensive infrastructure and long wait times to build it.
“Our research into regional markets within 2000 nautical miles that are gas constrained and/or are proposing gas fired power generation, contemplating LNG or other fuels,” Garry Triglavcanin commented.
GEV said today its already in talks with owners and operators of offshore platforms in the area. These operators already hold a network of “underutilised” pipelines for gas delivery.
The company is planning to source natural gas linked to the “Henry Hub”: a natural gas pipeline network located in Louisiana.
“GEV’s management team has a long and successful history of developing and permitting a U.S. gas export facility to be shovel ready and has maintained a strong network of skilled resources who are excited to work on what is expected to be the first CNG export terminal in the Gulf Coast,” CEO Maurice Brand said.
“Our discussions with a number of parties with onshore and offshore sites has quickly reinforced our view that an offshore export facility can get GEV to market with a timely economic and practical solution.”
As far as constructing the gas facility goes, the company believes the well defined regulatory approval processes of America will assist for a smooth process.
What makes the expansion an easy move as well, is that GEV expects to comfortably rely upon a consistent gas supply across America.
“With up to 80 per cent of the capital cost in our projects related to the CNG shipping, we can avoid the elevated costs associated with onshore facilities ramping up in construction for gas export sites in the next 3-5 years,” Maurice concluded today.
GEV has said further updates on the project will be released to shareholders this quarter.
However, shares in GEV on the Australian market have fallen 3.13 per cent today, trading at 15.5 cents each.