China-focused CBM developer extends bank loan
By Staff reporter
Posted 7 November 2014 13:37 GMT
CBM gas producer Far East Energy Corp. (FEEC) has extended the maturity of its outstanding debt with London-based Standard Chartered Bank until 5 December from the original 31 October repayment deadline. In 2012, the developer signed a $25 million credit facility with the bank to be used for project costs related to the Shouyang production area in Shanxi, China, as well as for general corporate purposes. The debt was originally expected to mature over a nine-month term ending in August 2012 – although a contractual term allowed for three subsequent extensions.
The news came as FEEC said it had brought a gas facility online adjacent to the company’s upstream assets in Shanxi. "The complex comprises a combined-cycle power plant, and an LNG plant, designed to use CBM as a gas supply. Additionally, the complex can also supply vehicles with CNG," FEEC said.
The power plant at the site is the largest peak load provider in Shanxi and was completed in just under two years. At capacity it can consume up to 1 billion cubic metres per year. FEEC has already begun supplying gas to the site, the company said in a statement.
