JV MOU Prepares the way for Production Start in the US Market Mid-2019

KEY TAKEAWAYS:

• Long Pipes Ltd (LPL) technology, the Pipe Production Machine (PPM), is now operational and production ready
• LPL announces the signing of the Houston JV Memorandum Of Understanding (MOU)- acting as the framework for the establishment of the company’s first overseas Joint Venture Production Company (JVPC), with Houston based pipeline company, Big Tuna LLC.
• The JVPC will focus on wastewater projects only for the coal seam gas fields, and work towards oil and gas pipeline capability.

The completion of the Laverton project in May has demonstrated that the centrepiece of the Long Pipes Ltd (LPL) technology, the Pipe Production Machine (PPM), is now operational and production ready. This was “proof to the world” of the Fluid Highway™ technology, and has opened the doors on a number of exciting new opportunities for the company. The most exciting of these is the immediate potential to shortcut entry into production in the US market by teaming up with a US partner.

Long Pipes Limited (LPL) is pleased to announce the signing last Friday 27 July of the Houston JV Memorandum Of Understanding (MOU) which will act as the framework for the establishment of the company’s first overseas Joint Venture Production Company (JVPC). Our new partner is the Houston based pipeline company, Big Tuna LLC.

This is a significant agreement for both parties as it provides a stepping stone for LPL to advance its Fluid Highway™ technology into the US market, and provides Big Tuna with access to market changing technology. The MOU lists the key terms, and establishes the processes, for completing formal legal agreements between the parties. Significantly, it also outlines the steps for preparing the Fluid Highway™ technology and equipment for pipe production start in Houston in Mid-2019.

Some of the key provisions of the MOU include:

• The JVPC will be jointly owned and controlled by the two parties.
• The primary role of LPL is to provide the technology and know-how relating to our Fluid Highway™ technology
• Big Tuna provides the pipeline construction, operational support, knowledge of US markets, and access to US projects and customers.
• Funding for the JVPC establishment and initial working capital will primarily be the responsibility of Big Tuna.
• LPL will provide a small amount of establishment capital, but its main contribution will be delivery of a PPM plus other equipment and technology support.
• Big Tuna has also agreed to subscribe for shares in LPL, thus providing important development capital for the future development of the technology and expansion of the company.
• The JVPC is geographically limited and will focus on the water, oil and gas pipeline opportunities in the shale oil and coal seam markets, thus providing future flexibility to LPL elsewhere in the US.

Market Opportunities for the Fluid Highway™ in the US are Large and Immediate

The JVPC will initially focus on wastewater projects only for the coal seam gas fields, and work towards oil and gas pipeline capability, as market knowledge is developed and LPL continues progress towards certification for water, oil and gas.

Market analysis suggests that opportunities in the vicinity of Houston alone would support initial production of 60 km/ month, and that the JVPC has the potential to be cashflow positive at an early stage.  Once embedded in the US, the market opportunities for the JVPC in the broader market are very large.

Innovative Global Expansion Strategy using JV’s – LPL is a technology company, not a pipeline construction company.

The JV structure outlined in the MOU is representative of LPL’s future strategy for global expansion.   Overseas operations will be established through JV’s with experienced local pipeline companies, thus using their local market knowledge and established operations, and obviating the need for material capital contributions from LPL and reducing risk.  This will be the key to LPL’s ability to support its rapid global expansion strategy.

Following on from the success of the Laverton project, this US partnership is a key milestone in the development of the Fluid Highway™ technology and the growth of Long Pipes Limited.

 

About Long Pipes Ltd

Long Pipes Ltd is a global game changer for the distribution of fluids around our planet for companies, governments, economies and regions using the Fluid Highway. First major contract for 10kms 1st Q 2018 with 200kms 2018 and 2,000kms in 2019 onwards with international markets in 2019 for $10B/yr. Looking for Projects and suitable Prod Co-Partners in the relevant markets.

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