IMW Industries, Ltd., a wholly-owned subsidiary of Clean Energy Fuels Corp. and manufacturer of non-lubricated natural gas compressors and related technologies for natural gas fueling application, has entered into a master purchase contract with China Gas Holdings Ltd. to supply up to 416 natural gas compressors and related technologies for the construction of up to 310 public access compressed natural gas (CNG) stations in China. The three-year agreement has a potential value of approximately USD167 million.
“The spirit of China Gas is built on integrity, innovation and cooperation; our agreement today with IMW is an example of this spirit in practice,” said Mr. Liu Ming Hui, executive chairman, managing director and president of China Gas Holdings. “IMW is the world-leader in natural gas vehicle compression technologies and the ideal strategic partner for China Gas as we continue to meet the growing transportation needs of our customers in an environmentally sustainable manner.”
Under the agreement, IMW anticipates supplying a suite of its CleanGAS TechnologyTM products and services, including up to approximately 416 CleanCNG Compressors, 186 dryers, 527 dispensers, and 387,500 liters of buffer storage to China Gas’ joint venture distribution partners for the construction of up to 310 stations. This is in addition to the 124 stations IMW has already equipped in China; all equipment is manufactured at IMW’s facility in Suzhou-Taicang, China.
“China has grasped the potential of natural gas as an alternative to gasoline and diesel fuel and is aggressively building the necessary infrastructure to realize this potential,” said Andrew J. Littlefair, president and CEO of Clean Energy. “In the coming years, China Gas and its partners plan to construct the equivalent of over half of all the public access CNG stations currently available in the United States—significant for our companies and the future of cleaner transportation in China.”
China Gas has secured financing for this transaction from Export Development Canada, which is expected to be utilized throughout the three-year agreement to help purchase the products and services under the purchase contract. An initial $5 million has been utilized for the purchase of 29 CleanCNG Compressors, which are anticipated to be delivered during the fourth quarter of 2013 and used to construct the first 19 stations.
“IMW is proud of the long term partnership we have developed with China Gas and we are eager to build this relationship through our continued support of their growth,” added Brad Miller, president of IMW.
China Gas Holdings Limited is principally engaged in the investment, construction and management of city gas pipeline infrastructure, distribution of natural gas and LPG to residential, industrial, commercial users, and through gas stations to the transportation sector.
(Source: Clean Energy)