OCI and Consolidated Energy Limited Enter into Definitive Agreements for the Joint Investment in Natgasoline
HOUSTON, April 13, 2016 /PRNewswire/ -- G2X Energy, Inc. today announced that Consolidated Energy Limited ("CEL") has entered into definitive agreements for an investment in a 50% stake in Natgasoline LLC in participation with OCI. CEL, which is owned by the Proman Group ("Proman") and its long-term partner Helm AG ("Helm"), will inject $630 million in equity and an additional $50 million shareholder loan. This agreement was contemplated in the Participation Agreement, which was signed between the parties on 14 March, 2016.
The investment will be made via G2X Energy (Beaumont) LLC ("G2X"), a subsidiary of Consolidated Energy Limited. The injection of $680 million into the project, combined with OCI's existing equity of $520 million and shareholder loans of $511 million, will complete the entire funding requirements for the project. G2X's investment will fund over time, with the initial investment funding on or prior to 16 May, 2016.
CEL, a global leader in methanol, will lead the effort in marketing and distribution of Natgasoline's product. In addition, Proman and G2X will contribute key management personnel and will provide technical leadership in the startup, operations and maintenance of the facility.
Natgasoline is constructing a greenfield methanol production facility in Beaumont, Texas. The plant is expected to have a capacity of up to 1.75 million metric tons per annum and will be the United States' largest methanol production facility. Natgasoline is expected to start production in the second half of 2017.
OCI N.V. CEO Nassef Sawiris commented: "OCI is pleased to strengthen its partnership with the Proman Group by entering into definitive agreements. This partnership creates an international leader in the global methanol space benefiting from the combined developmental expertise of both groups and specifically from the technical and commercial experience of Proman Group. We look forward to our successful strategic alliance in the methanol industry starting with the fast-track completion of the Natgasoline project in Texas."
David Cassidy, CEO of Proman and Chairman of CEL commented: "Proman is delighted that CEL and OCI could join forces on this excellent project. OCI has done tremendous things to date and we believe this partnership will be a great benefit to both groups as well as the methanol industry. The addition of the world scale Natgasoline investment to our global portfolio allows our group to expand in North America and to better serve our customers world-wide with high quality competitively priced methanol."
"Signing the definitive agreement with OCI and Natgasoline is a big step forward for G2X Energy," stated Tim Vail, President and CEO of G2X. "This acquisition fulfills one of our core funding objectives to become a major producer in the North American methanol market. The G2X team is excited to partner with OCI and welcomes Natgasoline into the CEL group of companies." Mr. Vail went on to say, "By working together, we can continue to build a world-class organization for the future."
About the Proman Group
Proman is a leading engineering, procurement and construction group specializing in managing large EPC projects on a lump sum turnkey basis in many different countries and regions around the world. Additionally, Proman is one of the largest owner/operators of methanol production in the world and is active in co-marketing and distributing petrochemicals. Proman is present on four continents and in 12 countries, with over 1,500 employees worldwide.
For more information, please visit www.proman.org
About CEL
CEL is the 2nd largest producer of methanol in the world with 4.1MM tonnes per annum of installed capacity through its 100% subsidiary Methanol (Holding) Trinidad Limited ("MHTL"). MHTL is the largest methanol exporter to North America and significant producer of fertilizer products. CEL further owns three strategic minority stakes via Oman Methanol Company LLC ("OMC"), a world scale methanol plant in Sohar, Oman, Nitrogen 2000 Unlimited ("N2000"), an ammonia plant and storage facility in Trinidad and Caribbean Nitrogen Company Limited ("CNC"), an ammonia plant and storage facility in Trinidad.
About G2X
Houston-based G2X Energy develops, owns and operates production facilities that convert natural gas to methanol for the US and international markets. Transforming natural gas by leveraging existing infrastructure and proven conversion technologies, G2X meets the demand for cost-competitive methanol and chemicals using abundant, clean, domestic US natural gas.
For more information, please visit www.g2xenergy.com
About OCI N.V.
OCI N.V. is a global producer and distributor of natural gas based fertilizers and industrial chemicals in the Netherlands. OCI produces nitrogen fertilizers, methanol and other natural gas based products, serving agricultural and industrial customers from the Americas to Asia. OCI ranks among the world's largest nitrogen fertilizer producers, and can produce more than 8.4 million metric tons of nitrogen fertilizers and industrial chemicals at production facilities in the Netherlands, the United States, Egypt and Algeria. OCI is listed on Euronext in Amsterdam.
SOURCE G2X Energy, Inc.
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