Thursday, June 26, 2008

A slight difference in statements: Chart Industries and Energy World Corporation

I wrote previously about the strange Energy World Corporation (EWC). See “Getting oil on my shirt”.

Some follow up is warranted – as I left the question as to who had the technology open. But I think we can decide pretty quickly who is telling the truth. Here are some direct quotes from EWC and Chart Industries.

This is from the last EWC annual report:

The Company has placed contracts with Chart Energy and Chemicals Inc (Chart) for four 500,000 tonnes per annum liquefaction plants and associated major equipments. As subcontracts to Chart the motor-driven MR compressors will be supplied by Siemens AG, Germany. These contracts which are within the original capital budgets, and programmed equipment deliveries will permit the production and delivery of LNG from our gasfield in Sengkang during the second half of 2009. Once installed and operating the trains will have the capability of producing 2 million tonnes of LNG per annum.

This is the Chart Industries press release:

Chart Industries to Supply Four LNG Liquefaction Trains in Indonesia for Energy World Corporation Equipment orders exceed $100 million

CLEVELAND, July 2 [2007] /PRNewswire-FirstCall/ -- Chart Industries, Inc. (Nasdaq: GTLS) announced that its wholly-owned subsidiary, Chart Energy & Chemicals, Inc. ("Chart E&C"), has been awarded significant orders totaling in excess of $100 million from Energy World Corporation Limited ("EWC") to supply Cold Boxes, Brazed Aluminum Heat Exchangers, Air Cooled Heat Exchangers and ancillary equipment for four 500,000 tons per year Liquefied Natural Gas ("LNG") Liquefaction Trains to be installed by EWC in Southeast Asia. The trains are intended to provide LNG to meet the growing demand for LNG in Indonesia, the Philippines, China and Japan as the economies in these regions grow. The first two trains are scheduled to come on stream in the second quarter 2009.

Do you notice any difference between these statements?

Well – there is some difference between an “LNG Plant and associated major equipment” (as per the EWC statement) and “Cold Boxes, Brazed Aluminum Heat Exchangers, Air Cooled Heat Exchangers and ancillary equipment” as per the Chart release.

For a start nobody has mentioned purification (essential because otherwise the carbon dioxide that exists in all gas freezes in the cold-boxes and blocks the equipment), storage tanks, port facilities, pipelines to the gas field or anything else. The storage tanks are particularly expensive.

John

As an afterword: Funnily enough there is no point using Google to find anything put out by EWC. They format all their releases as PICTURES not as text – which makes them impossible for Google’s bots to dictate. I had to retype…

Further EWC doesn’t maintain a website – something that is unusual for a multi-billion dollar company.

2 comments:

Anonymous said...

They appear to have a CPP unit that purifies gas for input to their power plant that currently supplies local state owned power company. Presumably that is why they have no need for purifier at this stage. Agree with the comment on how unusual it is for a quoted company not to have a website. The only way of getting info is via ASX website and submissions that they make. Other issue that may cause problem on Sengkang project is the feeling at certain high levels in Indonesia that gas should be used for national projects such as fertiliser factories, all state owned, that are not working at full capacity due to lack of gas and giving gas to state owned electricity company for use in dual purpose power stations that currently use expensive diesel...all at very low prices. They may escape this threat as possibly 50% of gas will be going to supplying electricity locally via their power plant that produces electricity to sell to state electricity company.

Anonymous said...

They have a website now, although it doesn't have complete content. Today they also agreed to agree on a contract for a Papau New Guinea LNG plant.

http://www.energyworldcorp.com/

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