Jiangxi Jovo Energy Co.Ltd(605090) ( Jiangxi Jovo Energy Co.Ltd(605090) ) announced on the evening of May 22 that it planned to issue shares, convertible corporate bonds and pay cash to 53 shareholders of Sentai energy, including newsources and Li Wanling, to purchase 100% shares of Sentai energy held by them. Among them: 600 million yuan in cash, 120 million yuan in issued shares and 1.08 billion yuan in issued convertible corporate bonds. Meanwhile, Jiangxi Jovo Energy Co.Ltd(605090) 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.
Jiangxi Jovo Energy Co.Ltd(605090) positioned as a clean energy service provider with value and creativity, it has been deeply engaged in South China for more than 30 years. Its main business includes LNG, LPG, methanol, dimethyl ether, etc., and vigorously develops LNG business. Before this transaction, Jiangxi Jovo Energy Co.Ltd(605090) business has covered the whole industrial chain of international procurement – ocean transportation – wharf storage – processing and production – logistics distribution – terminal services, realizing the “end-to-end” all-round layout of clean energy.
In 2021, great changes have taken place in the international natural gas market. The spot CIF price of “HNA LNG” has been upside down with the price in the Chinese market for a long time. Although the company has sufficient advantages and guarantee of long-term contract gas, the volatility of single gas source still poses challenges to Jiangxi Jovo Energy Co.Ltd(605090) sustainable and stable operation.
In view of this, the Jiangxi Jovo Energy Co.Ltd(605090) board of directors and the management believe 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 “land, to the terminal and out of South China”, actively layout the “land gas” resources and market, and promote the sustainable, stable and healthy development of the company.
Sentai energy has built and put into operation four LNG liquefaction plants in Sichuan and Inner Mongolia, with an annual liquefaction production capacity of nearly Shanghai Pudong Development Bank Co.Ltd(600000) tons of LNG. 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 ability, high popularity in the LNG vehicle filling market in the southwest and northwest, and actively promotes the development and comprehensive application of shale gas.
After the completion of this transaction, Jiangxi Jovo Energy Co.Ltd(605090) 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, Jiangxi Jovo Energy Co.Ltd(605090) ‘s market radiation range will rapidly expand from South China to southwest and northwest regions, and positive progress will be made in realizing the national industrial layout. In addition, Jiangxi Jovo Energy Co.Ltd(605090) will take the opportunity to quickly enter the LNG vehicle filling market, and the application field of the company’s LNG business terminal has been effectively expanded.
Jiangxi Jovo Energy Co.Ltd(605090) said that the two sides have strong synergy in terms of resources, market, region, management and scale, which can effectively reduce the fluctuation caused by a single gas source on the company’s operation and promote the sustainable, stable and healthy development of the company. In the future, with the deepening of the national oil and gas reform and the smooth implementation of the “x + 1 + X” model (i.e. the oil and gas market system of multi-body and multi-channel supply of upstream oil and gas resources, efficient gathering and transportation of the middle “one network” and benign competition in the downstream market, the full text is the same), Jiangxi Jovo Energy Co.Ltd(605090) “sea and gas resources” and “land and gas resources” of Sentai energy are expected to be interconnected, which is conducive to realizing resource coordination, improving gas source guarantee and reducing cost fluctuation, Enhance the core competitiveness of listed companies.
According to Jiangxi Jovo Energy Co.Ltd(605090) announcement, Sentai energy has the key technology and operation capacity of LNG project bog helium extraction, and has built a set of bog helium extraction device with good operation. The purity of helium extracted by the project is as high as 99.999%.
Helium is an important strategic resource related to national security, high-tech Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) development and people’s health. At present, almost all high-purity helium in China depends on imports, which 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 field of Jiangxi Jovo Energy Co.Ltd(605090) industry.
In addition, Jiangxi Jovo Energy Co.Ltd(605090) said that the company has formulated the development plan and specific implementation path of hydrogen energy industry, and will increase its layout in the field of hydrogen energy in the future. With the official launch of “Chengdu Chongqing hydrogen corridor”, the development of hydrogen energy industry in Southwest China is expected to usher in a period of rapid development. Sentai energy has three LNG liquefaction plants in Southwest China, which is rich in low-cost hydropower resources and has strong resource advantages in using its own feed gas to carry out “hydrogen production by natural gas reforming”; Meanwhile, Sentai energy operates and cooperates in several LNG filling stations to provide important terminal support for the closed-loop development of the whole industrial chain of the company’s hydrogen energy business in the future.
