Houston, TX, May 18, 2020 --(PR.com
)-- Searaven Glauben, LLC (“SGB”) officially announced the signing of a revised and restated multi-year Bitumen supply contract with a major port in China (“Buyer”) whereby the Parties agree to mutually extend the original contract for an additional 5 years with a value of $3.36 billion over the life of the revised agreement.
The original fixed-priced, guaranteed minimum master agreement, announced Sept. 29, 2019, had an initial value of over $1.68 billion (USD). With today’s signing, the new agreement extends the Bitumen supply contract from 5 to 10 years, valued at $3.36 billion.
SGB management stated, “With volatility in the energy space related to COVID-19, we are pleased to have the opportunity to provide our customer with Bitumen to meet their future needs.” SGB added, “This agreement represents a significant opportunity for SGB and our Buyer, and demonstrates our commitment to provide the best prices and quality to meet our customers’ demands through this difficult period.”
The first Bitumen shipment is scheduled for delivery in June 2020, subject to COVID-19 restrictions, and shall continue uninterrupted for ten years. After touring the Buyer’s facility and noting the operation size, SGB and the Buyer anticipate an increased shipment amount in the near future.
The contract includes options for the Buyer to increase the minimum annual supply amount to 5 times the current contracted quantity.
SGB’s parent company, Lowe II, LLC, stated, “We also want to thank the Buyer for providing us this unique opportunity to deliver the Bitumen, which will allow the Buyer to increase its market share in China. We also want to acknowledge the hard work and commitment shown by both sides during negotiations.”
About Lowe II, LLC
Lowe II, LLC is privately owned and controlled by the Gerauer Family Trust, the Wallace Family Trust, the Genius Family Trust, Mr. Michael Chung, Mr. David Ting, and International Infrastructure Investment, Inc. Lowe II wholly owns and controls Searaven Glauben, LLC, Mega Energy Equipment, Inc. (based in China), Glauben Besitz, LLC, and Strom, Inc.
About Searaven Glauben, LLC
Searaven Glauben, LLC, is a wholly-owned subsidiary of Lowe II, LLC. In addition to more traditional energy production, Searaven Glauben plans to develop a 25 million ton per annum (25mtpa) BIO-LNG terminal in the U.S. We anticipate it will be the first of its kind in the U.S., combining bio-waste (liquified biogas) with natural gas to produce BIO-LNG.
SGB management stated, “With the world’s demand for cleaner fuel supply, our two BIO-LNG terminals will offer unique and cost competitive products. BIO-LNG is a ‘ready to go’ fuel mixture capable of meeting the world's demand for cleaner fuel sources.”