IEV Energy Plans IPO to Fund Java Gas Project
Posted on: Monday, 14 July 2008, 00:00 CDT
By Sharen Kaur
IEV Energy Sdn Bhd, the energy arm of IEV Group Sdn Bhd, hopes to raise around US$150 million (RM486 million) from an initial public offering (IPO) in 2010 to part-finance a gas processing plant in Indonesia.
The privately-held company, in which AmInvestment Group Bhd (AIGB) is an investor, is partnering PT Mitra Energi Buana to set up a liquefied natural gas plant in east Java, Indonesia.
"We will start the construction in 2010 after completing a feasibility study, which is to ensure there is consistent gas supply for 10 years and that the gas is usable," group chief executive officer Christopher Do said.
It will also borrow from banks to help fund the plant.
IEV Group is owned by chairman Tan Sri Hari Narayanan, corporate affairs director Joanne Bruce and Do. AIGB holds preference shares worth some RM10 million in IEV Energy.
However, IEV Energy has yet to decide whether to list its shares in Malaysia, Singapore or Hong Kong, Do said in an interview in Petaling Jaya, Selangor.
IEV Energy expects to account for more than half of IEV Group's revenue in the year to December 31 2009.
It also plans to build a cluster of compressed natural gas (CNG) plants in Indonesia. The company launched its first US$10 million (RM32.4 million) CNG processing plant in Cikarang, Jakarta, on July 12.
It is the first licensed plant to operate in Indonesia, producing five million standard cubic ft per day (mmscfd) which is able to fuel 5,000 taxis a day.
The second and third CNG plants will operate from Tanjung Priok, Jakarta, and west Jakarta in two years.
"Indonesia has a lot of power plants so there is a lot of potential for gas. Power plants with 1,000 megawatts will easily use 200 million mmscfd," he said.
IEV Energy also has a CNG plant venture with Petro Vietnam in Phu My, Ba Ria province, which is being built for less than US$10 million, to deliver gas to industrial users.
(c) 2008 New Straits Times. Provided by ProQuest Information and Learning. All rights Reserved.
Source: New Straits Times
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