Clean Energy's IMW Subsidiary to Supply up to 416 CNG Compressors to China Gas for the Construction
Clean Energy's IMW Subsidiary to Supply up to 416 CNG Compressors to China Gas for the Construction of 310 CNG Stations in China
CHILLIWACK, British Columbia--(BUSINESS WIRE)-- IMW Industries, Ltd., a wholly-owned subsidiary of Clean Energy Fuels Corp. (Nasdaq:CLNE), today announced a master purchase contract with China Gas Holdings Ltd. (SEHK:384) 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 U.S. $167 million.
China Gas CEO Mr. Lui Ming Hui shakes hands with Export Development Canada (EDC) Senior Vice President of Financing, Benoit Daignault at a signing ceremony at EDC headquarters today in Ottawa, Ontario. Also photographed (from left) IMW Shanghai CEO Kirk Livingston and Clean Energy COO Mitchell W. Pratt. (Photo: Business Wire)
"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 CompressorsTM, 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.
ABOUT IMW INDUSTRIES
IMW Industries is the largest sole manufacturer of non-lubricated natural gas compressors and related technologies for natural gas fueling applications in the world. IMW's products are manufactured in Chilliwack, British Columbia, Ferndale, Washington, and Shanghai, China, and are utilized at private and public access fueling stations, as virtual pipelines and in industrial gas solutions. Headquartered in Chilliwack, British Columbia, IMW is a wholly-owned subsidiary of Clean Energy Fuels Corp. (NAS: CLNE) , the largest provider of natural gas fuel for transportation in North America. For more information, visit www.imw.ca.
ABOUT CHINA GAS
China Gas Holdings Limited ("China Gas," SEHK:384) 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. Major shareholders of the Company include the Beijing Enterprises Group (BVI) Company Limited, SK group of companies, Fortune Oil PLC in UK, Sinopec, the second largest petroleum and natural gas producer in China, and Gail (India) Limited. To date, China Gas owns a total of 194 natural gas projects, including exclusive piped gas development rights in 184 cities and regions, 9 natural gas pipeline transmission projects, 1 natural gas exploration project, as well as the license to import and export LNG and other fuel products in China, and 44 LPG distribution projects.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including statements about the number of natural gas vehicle fueling stations to be constructed by China Gas and its partners, the amount of compressors and other equipment to be sold by IMW to China Gas and its partners, the economic value of the master purchase agreement and any equipment supplied thereunder, the availability of financing from Export Development Canada and the benefits of natural gas relative to gasoline and diesel fuel. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including, but not limited to, failure by China Gas and its partners to build the expected stations and/or purchase compressors and equipment from IMW. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents the Company files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.
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KEYWORDS: Asia Pacific North America Canada China
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