CALGARY, Alberta, July 17, 2024 (GLOBE NEWSWIRE) -- Condor Energies Inc. (“Condor” or the “Company”) (TSX:CDR), a Canadian based energy transition company focused on providing stable and sustainable energy transition solutions, is pleased to announce the signing of its first LNG Framework Agreement (“Agreement”) for the utilization of liquefied natural gas (“LNG”) to fuel Kazakhstan’s rail locomotives. The Agreement was also signed by Kazakhstan Temir Zholy National Company JSC (“KTZ”), the national railway operator of the Republic of Kazakhstan (“Kazakhstan”) and Wabtec Corporation (“Wabtec”) (NYSE: WAB), a U.S. based locomotive manufacturer with existing facilities in Kazakhstan.
KTZ and Wabtec previously signed a memorandum of understanding which includes modernization work to retrofit KTZ’s mainline locomotive fleet for LNG usage and incorporate LNG into new build locomotives. The Agreement introduces Condor into this locomotive fleet modernization strategy as the supplier and distributor of the LNG.
The Agreement also provides a detailed framework whereby the three parties coordinate efforts to ensure that Condor’s LNG production volumes coincide with the delivery of new and converted LNG-powered rail locomotives from Wabtec. A working group comprised of members from each of the parties will be responsible to identify and monitor the key performance indicators associated with this initiative.
Displacing diesel with LNG as the fuel in locomotives is expected to reduce costs and increase the speed of railing freight across Kazakhstan by increasing operating ranges, reducing transit times, and lowering fuel and maintenance costs. It will also materially reduce greenhouse gas emissions in support of the Government of Kazakhstan’s target to be carbon neutral by 2060.
The Agreement is also critical to supplying a stable, economic and more environmentally friendly fuel source for the Transcaspian International Transport Route (“TITR”) expansion, which is currently the shortest, fastest and most geopolitically secure transit corridor for moving freight between Asia and Europe. The Government of Kazakhstan and KTZ are making significant investments in the TITR infrastructure, including expanding the rail network, constructing a new dry port at the Kazakhstan – China border, and increasing the container-handling capacities at various Caspian Sea ports.
Condor has already completed front-end engineering for its first modular LNG facility and detailed engineering will commence shortly. The Company’s LNG facilities will utilize leading-edge technology developed by the United States Department of Energy and commercialized by Condor’s LNG partner in the United States. The first facility will be constructed near Aktobe, Kazakhstan and produce 120,000 metric tons of LNG annually, which is the energy equivalent volume of 450,000 liters of diesel per day. Phase 1 of the first facility is currently scheduled to commence LNG production in mid 2026, for which a stable feed gas supply has already been secured. The Company is also advancing project funding alternatives.
Don Streu, President and CEO of Condor commented: “This is a significant milestone in the Company’s strategic plan to promote, produce and distribute LNG for use in Kazakhstan’s transportation sector. The close cooperation outlined in the Framework Agreement will ensure the three parties effectively coordinate the timely production and delivery of LNG, which will more effectively fuel Kazakhstan’s energy transition requirements and growth plans. The TITR, with its ever-increasing importance as the shortest and faster route to transport freight between Asia and Europe, is expected to further enhance LNG demand”.
Readers are invited to review the Company’s latest corporate presentation available on the Condor website at “condorenergies.ca”.
ABOUT CONDOR ENERGIES INC.
Condor Energies Inc. is a TSX-listed energy transition developer focused on diverse initiatives in Central Asia. With producing gas assets, an ongoing project to construct and operate Central Asia’s first LNG facility and a separate project to develop and produce lithium brine, the Company has built a strong foundation for reserves, production and cashflow growth while also striving to minimize its environmental footprint.
ABOUT KTZ
KTZ is the national railway operator with more than 100,000 employees and operating a fleet of more than 1,400 locomotives throughout Kazakhstan.
ABOUT WABTEC
Wabtec is a Fortune 500 company. Headquartered in the U.S. with operations in 50+ countries. It has over 150 years experience in the rail locomotive manufacturing and servicing industry. Its NextFuelTM diesel – LNG system has been in operation since 2018.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as “anticipate'', “appear”, “believe'', “intend”, “expect”, “plan”, “estimate”, “budget'', “outlook'', “scheduled”, “may”, “will”, “should”, “could”, “would”, “in the process of” or other similar wording. Forward-looking information in this news release includes, but is not limited to, information concerning: the timing and ability of the three parties to coordinate efforts to ensure that Condor’s LNG production volumes coincide with the delivery of new and converted LNG-powered rail locomotives from Wabtec; the timing and ability to monitor the key performance indicators associated with this initiative; the timing and ability to increase operating ranges, reduce transit times and lower fuel and maintenance costs; the ability to materially reduce greenhouse gas emissions; the timing and ability to supply a stable, economic and more environmentally friendly fuel source; the timing and ability to conduct detailed facility engineering; the timing and ability to use leading-edge technology for the LNG facility; the timing and ability to construct facilities and to produce and sell 120,000 metric tons of LNG annually from the first LNG facility; the timing and ability to produce LNG by mid-2026; the timing and ability to secure project funding; and the timing and ability of the TITR transport route to further enhance LNG demand.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
For further information, please contact Don Streu, President and Chief Executive Officer or Sandy Quilty, Vice President of Finance and Chief Financial Officer at 403-201-9694.
