(Original title: JOVO Energy intends to acquire 100% shares of Sentai Energy, which will form a dual gas source pattern of “sea gas + land gas”)
Jiufeng Energy (605090) announced on the evening of May 22 that it plans to issue shares, convertible corporate bonds and pay cash to 53 Sentai Energy shareholders including NewSources, Li Wanling and other 53 Sentai Energy shareholders to purchase 100% of their shares in Sentai Energy. Among them, 600 million yuan will be paid in cash, 120 million yuan will be paid with issued shares, and 1.08 billion yuan will be paid with issued convertible corporate bonds. At the same time, JOVO Energy plans to issue convertible corporate bonds to no more than 35 specific investors to raise supporting funds, with the amount of supporting funds raised not exceeding 1.2 billion yuan.
JOVO Energy is positioned as a clean energy service provider with value and creativity. It has been deeply involved in southern China for more than 30 years. Its main businesses include LNG, LPG, methanol, dimethyl ether, etc., and vigorously develops LNG business. Before this transaction, JOVO’s energy business has covered the entire industrial chain of international procurement – ocean transportation – terminal warehousing – processing and production – logistics distribution – terminal services, etc., to achieve an all-round “end-to-end” layout of clean energy.
In 2021, the international natural gas market will undergo great changes, and the spot CIF price of “sea gas LNG” will be inverted for a long time with the domestic market price. Although the company has sufficient advantages and guarantees for long-term gas contracts, the volatility of a single gas source will affect the The continuous and stable operation of Feng Energy still brings challenges.
In view of this, the board of directors and management of JOVO Energy have carefully assessed that it is necessary to speed up the adjustment and upgrading of the LNG business operation strategy at this stage, and put forward the strategic implementation plan of “going to land, reaching the terminal, and going to South China” to actively deploy “Land gas” resources and markets promote the company’s sustainable, stable and healthy development.
Sentai Energy has built and put into operation four LNG liquefaction plants in Sichuan and Inner Mongolia, with an annual output of nearly 600,000 tons of LNG liquefaction production capacity. Its business and market areas cover Sichuan, Yunnan, Guizhou, Inner Mongolia, Ningxia, Shanxi and other regions. Sentai Energy has the advantages of stable LNG “land gas” resource supply and guarantee, strong terminal market development capability, and has a high reputation in the LNG vehicle refueling market in the southwest and northwest regions, and actively promotes the development and comprehensive application of shale gas .
After the completion of this transaction, JOVO Energy will gain an important fulcrum in terms of “land gas” resources, and formally form a dual gas source pattern of “sea gas + land gas”. Through this transaction, the market coverage of JOVO Energy will rapidly expand from the South China region to the Southwest and Northwest regions, and positive progress has been made in realizing the national industrial layout. In addition, JOVO Energy will take the opportunity to quickly enter the LNG vehicle refueling market, and the terminal application field of the company’s LNG business has been effectively expanded.
JOVO Energy stated that the two parties have strong synergy in resources, markets, regions, management, scale, etc., which can effectively reduce the fluctuations caused by a single gas source to the company’s operations and promote the company’s sustainable, stable and healthy development. In the future, with the in-depth advancement of the national oil and gas reform and the “X+1+X” model (that is, the oil and gas market system with multi-subject and multi-channel supply of upstream oil and gas resources, efficient gathering and transportation of “one network” in the middle, and benign competition in downstream marketization, The smooth implementation of JOVO Energy’s “sea gas resources” and Sentai Energy’s “land gas resources” is expected to be interconnected, which is conducive to realizing resource coordination, improving gas source security, reducing cost fluctuations, and enhancing the core competitiveness of listed companies. .
According to the announcement of JOVO Energy, Sentai Energy has the key technologies and operational capabilities for BOG helium extraction from LNG projects, and has built a set of BOG helium extraction devices, which are operating well. The purity of helium extracted from the project is as high as 99.999%.
Helium is an important strategic resource related to national security, high-tech industry development and people’s livelihood and health. At present, domestic high-purity helium gas is almost entirely dependent on imports, and it is expensive and the resource security situation is grim.
At present, Sentai Energy has planned to invest in the construction of “Natural Gas Liquid Helium Production Project”. After the completion of this transaction, BOG helium extraction will become an important development area of JOVO Energy.
In addition, JOVO Energy stated that the company has formulated a hydrogen energy industry development plan and a specific implementation path, and will increase its layout in the hydrogen energy field in the future. With the official launch of the “Chengdu-Chongqing Hydrogen Corridor”, the development of the hydrogen energy industry in Southwest China is expected to usher in a period of rapid development. Sentai Energy owns 3 LNG liquefaction plants in the southwest region. This area has abundant low-cost hydropower resources and has strong resource advantages in using its own raw gas to carry out “natural gas reforming hydrogen production”; at the same time, Sentai Energy has Operate and cooperatively operate a number of LNG vehicle filling stations, providing important terminal support for the closed-loop development of the company’s entire industry chain of hydrogen energy business in the future.