Gasol plc Cooperation Agreement with China Machinery Enginee (9990F)

TIDMGAS

RNS Number : 9990F

Gasol plc

01 May 2014

Gasol plc

("Gasol" or "the Company")

(AIM: GAS)

Cooperation Agreement with China Machinery Engineering Corporation

Gasol plc, the AIM listed gas to power company, is pleased to announce that it has signed a Cooperation Agreement with China Machinery Engineering Corporation ("CMEC"), part of the China National Machinery Industry Corporation (Sinomach) group of companies. CMEC is one of the leading companies in the world in the construction of power projects in generation, transmission, and distribution.

Gasol is focused on the supply of gas to power projects in Africa, and is interested in developing greenfield gas-fired power plants in markets where it supplies the gas. CMEC has extensive experience in the design and construction of power generation and distribution infrastructure. Together, the two companies have agreed to cooperate on prospective power projects and Gasol will offer CMEC a right of first refusal to be the exclusive Engineer, Procure, Construct "EPC" Provider (including civil works and equipment supply) for the power plants. In return, CMEC has agreed to carry out feasibility studies for the power plants and, if the parties elect to proceed after consideration of the studies, to assist in the arranging of debt financing for the construction of the plants through Chinese banks. CMEC would execute the EPC Contract for the gas-fired plants on a lump sum, turnkey basis. The signing of the Cooperation Agreement with CMEC follows on from the Strategic Partnership Agreement that Gasol concluded recently with African Iron Ore Group (AIOG). AIOG has relationships with Chinese State Owned Enterprises in the power sector and has assisted Gasol in reaching its agreement with CMEC.

Alan Buxton, Chief Operating Officer at Gasol, said: "We are positioning Gasol as a leader in gas to power solutions in Africa. It is essential that we are able to provide not just a gas supply offering, but a solution to convert our gas into power to address the power deficit in many African nations. This agreement with CMEC is very important for us and I am delighted that we are able to announce the signing of our Cooperation Agreement. The next step is for us to work with CMEC on the feasibility studies for the projects that we have in mind and then announce which is the first power project that we are going to develop together."

For further information, please contact:

 
 Gasol plc 
  Alan Buxton, Chief Operating 
  Officer                         +44 (0) 20 7290 
  www.gasolplc.com                 3300 
 Panmure Gordon (UK) Limited 
  Dominic Morley (Corporate 
  Finance) 
  Callum Stewart (Corporate       +44 (0) 20 7886 
  Finance)                         2500 
  Adam Pollock (Corporate 
  Broking) 
 
  Yellow Jersey PR Limited 
  Dominic Barretto                 +44 (0) 7799 003 
  Kelsey Traynor                   220

Notes to Editors:

About Gasol plc

Gasol plc is an AIM listed energy development company focusing on gas constrained nations. Power stations in West Africa currently operate predominantly on liquid fuels such as diesel, light crude and jet fuel, but many of these plants are also capable of using gas. Gasol will initially supply these customers with gas from regasified Liquefied Natural Gas ("LNG"), which can provide significant cost savings in the order of 20 to 30 per cent. This involves the delivery of LNG to leased Floating Storage and Regasification Facilities which will be positioned in Cotonou harbour, Benin and will supply the regasified LNG into the West African Gas Pipeline.

The West African Gas Pipeline is a 678km gas pipeline involving an investment of over US$1 billion, built to transport gas from Nigeria to Benin, Togo and Ghana which has been operational since March 2011, but today operates at significantly less than full capacity. Once there is sufficient regional demand for gas, Gasol aims to develop captive gas reserves in offshore Nigeria and will supply this gas through the West African Gas Pipeline. This pipeline gas will be cheaper and therefore displace the LNG derived gas, resulting in further savings for customers.

As part of a consortium called Electrogas Malta, Gasol has also been awarded a LNG-to-power project by Malta's state power utility Enemalta, as the country aims to lower its energy costs. Electrogas Malta is a consortium made up of Gasol, SOCAR Trading SA, GEM Holdings Ltd and Siemens Project Ventures, the equity financial arm of Siemens Financial Services.

Gasol's shares have been listed on London Stock Exchange's AIM since 2005 with the ticker code "GAS". Further information on the Company is available at www.gasolplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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