Confidence Petroleum enters into JV with US-based Energtek

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Mumbai, Mar 18 (UNI) LPG cylinder manufacturing, bottling and marketing major, Confidence Petroleum India has entered into a joint venture with US-based Energtek Products for commercial production and marketing of Absorbed Natural Gas (ANG) in India by 2009.

The two companies signed a memorandum of understanding (MoU) here today to kick start the joint venture business in the country and said that they will initially invest USD 25 million (Rs 100 crore) in the ANG project.

Talking to reporters, Confidence Petroleum Chairman and Managing Director Nitin Khara said that with the technical assistance of Energtek Products, which is a world leader in NG and ANG technology for pipe less supply to automotive and industrial consumers, they will develop a bottling unit at their existing unit at Kashipur in Uttaranchal and expect a market revenue of Rs 80 crore in the first year.

The new concept of ANG, which will be comparatively more viable and cheaper than Compressed Natural Gas (CNG), will be initially offered for kit-fitting in two and three wheelers, Mr Khara said, adding, ''A potable cylinder of three litre will be capable of covering a distance of 100 Km and will cost about Rs 20 per litre.'' The Company has already got approval from Bajaj Auto for using it in its two and three wheelers vehicles. The Company is also in talks with other two wheeler manufacturers, Company's Corporate Vice President Vimal K Parwal said.

Apart from this, a new fully owned subsidiary of Primecyl LLC -- Confi Energtek Asia -- will be established in India to carry the joint venture business in India through out Southeast Asia, including Bangladesh, Indonesia, Thailand, Singapore, Philippines and Pakistan. Primecyl LLC is also the owner of Ukcyl, a manufacturing facility for high-pressure cylinders in Ukraine, he added.

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