10 Mar 2014 07:00
10 March 2014
GREKA ENGINEERING & TECHNOLOGY LTD
("Greka Engineering", "Greka" or the "Company")
Power Supply Contract
Greka Engineering & Technology Ltd. (AIM: GEL), the unconventional gas sector engineering and technology business with pipeline, gas compression and power generation assets in China, is pleased to announce a power supply contract with Jiaqin Agriculture Company for three years.
The customer is developing an agricultural project within the existing catchment area of the Company and the gas to power will be generated from the Company's integrated production facility. The Company's power plant is environmentally progressive and reliable resulting in the customer agreeing to pay above market rates for this supply. This is the third customer to be supplied power by Greka Engineering that is also already using facilities supplied, operated and constructed on a tolling pricing structure. Revenue from this contract is expected to commence in May 2014 with additional engineering services and expertise from Greka Engineering.
Pricing terms between the parties are confidential with the power generated from gas under the terms of the existing contract between Greka Engineering and Green Dragon Gas. Initially this contract is expected to supply 1,700 MWH annually.
Randeep S. Grewal, Chairman of Greka Engineering, commented:
"This contract represents an important milestone for the Company as it demonstrates our ability to deliver gas and electricity at optimal pricing to multiple end customers. The deal signals a deliverable and scalable strategy that benefits from years of accumulated knowledge of compression, transmission and gas-to-power technologies."
For more information of Greka Engineering, please visit the company website at: www.grekaengineering.com.
Contacts:
Greka Engineering Randeep Grewal, Chairman
| +852 3710 0168 |
Smith & Williamson Nominated Adviser Dr Azhic Basirov / David Jones / Ben Jeynes
| +44 20 7131 4000 |
RFC Ambrian Broker Sarah Wharry
| +44 20 3440 6800 |
WH Ireland Broker Tim Feather
| +44 113 394 6600 |
Walbrook Media & Investor Relations Paul Cornelius / Guy McDougall
| + 44 20 7933 8780 get@walbrookpr.com |
About Greka Engineering and Technology
Greka Engineering & Technology Ltd., (AIM; GEL) was demerged from Green Dragon Gas Limited (AIM; GDG) via a dividend in specie and was admitted to trading on AIM in September 2013.
Greka Engineering offers turnkey solutions to over 90 upstream, midstream and downstream gas suppliers. The Company's technologies include Compressed Natural Gas/Liquefied Natural Gas (CNG/NLG) compressor equipment, CNG retail dispenser equipment and CBM wellhead extraction technologies. The Company also supplies proprietary Integrated Circuit Card Point of Sale (ICC POS) and Supervisory Control and Data Acquisition (SCADA) software and hardware solutions for the remote management of transmission systems, power facilities, vehicle management and retail services.
In addition, the Company invests in, operates and maintains wholly owned assets for its customers in return for service contracts based on the volume management.
The Company has historically completed several Engineering, Procurement, Construction and Management (EPCM) contracts including the design, construction and management of gas gathering systems, a gas pipeline in Shanxi Province to the China West-East pipeline, the installation and commissioning of a 10MW gas-fired power facility in the Shanxi province and the construction of CNG retail stations.