GEV to pursue stranded Malaysian gas

Global Energy Ventures is developing a plan to develop stranded gas fields in Malaysia using its floating compressed natural gas technology, after signing a letter of intent with Kuala Lumpur-based Tamarind Resources.

Under the deal, the two businesses will seek to pick a number of potential fields to develop and eventually operate, with one resource already in the pipeline with an established commercial case.

West Perth-based Global is led by executive chairman Maurice Brand, who was formerly managing director of LNG Limited, which was at the time developing a project in Canada.

Tamarind operates the Tui Area oil project in New Zealand and has provided debt backing for Triangle Energy’s Cliff Head field in the Perth Basin.

The business is backed by private equity, which initially stumped up a capital commitment of  $US800 million.

The partnership is planning to use Global’s CNG Optimum processing technology and ships, with capacity of about 200 million cubic feet, to export to nearby markets.

Mr Brand said Malaysia had a number of stranded gas fields.

“We have considered for some time that the GEV CNG solution would be the best commercial outcome for all parties,” he said.

“Our business model includes working with well resourced groups who also have in-country expertise.

“We are pleased to enter into this (letter of intent) with Tamarind, which can provide that complimentary fit with the GEV strategy.”

Perth business Transborders LNG is pursuing a similar concept in the Australian market, with a plan to develop a floating LNG facility to develop stranded gas fields in the region.

There are about 40 such fields in Australia alone, according to Transborders.

Shares in GEV closed up 7.1 per cent at 15 cents each.