Confidence Petroleum has entered into a joint venture with Energytek to explore new avenues in the area of natural gas

Nagpur-based Confidence Petroleum India has entered into a joint ven-ture with Energtek Inc., to provide clean and affordable pipeless natural gas supply to automotive and industrial consumers. With a 50:50 equity participation by both the companies at an investment of Rs 100 crores, the first phase of the venture will involve Confidence picking up co-ownership of Energtek's subsidiary Primecyl LLC, which is also the owner of Ukraine-based Ukcyl, at a cost of Rs 100 crores. |

A new fully owned subsidiary of Primecyl LLC, Confi Energtek Asia Ltd, would be established in India to carry the joint venture businesses in India and throughout Southeast Asia. Speaking on the eve of the announcement, Nitin Khara, chairman and managing director of Confidence Petroleum India said, "We are Asia's largest LPG cylinder manufacturer and also a leading LPG bottler. Keeping in line with our growth strategy we are aggressively planning to establish ourselves in the natural gas energy segment. This JV is a step towards achieving our goals." 

Lev Zaidenberg, Chief Executive Officer, Energtek Inc., expressed that the agreement allows Energtek and Confidence Petroleum to combine the technology, manufacturing and marketing resources needed to provide a natural gas supply solution that is financially beneficial to energy consumers across Asia. Lev added, "The JV will pioneer ANG technology and the plan includes LMP projects, FIT projects, ANG cylinder manufacture, LMP semi-trailer manufacture and CNG cylinder manufacture." Pointing at a working prototype of a scooter employing ANG (absorbed natural gas) technology, Lev remarked that India is one of the leading consumers of natural gas in autos. "The two- and three-wheeler market remains unexplored and India is a huge (an estimated 100 million) market for two- and three-wheelers. ANG enables gas storage in a very small cylinder, and absorbs natural gas like a sponge; the cylinders can be clip-on type for two- and three-wheelers and encourage FIT (fast interchangeable technology) and fruitful exploration in the area of LMP and stranded and associated gases." 

ANG technology utilises activated carbons placed inside the tank to absorb greater quantities of gas, similar to a sponge. The use of ANG technology, according to Energtek sources, enables similar volumes of gas in the same container at a lower pressure, significantly reducing the costs of refueling infrastructure and fuel as well. The lower pressure also allows greater flexibility in gas tank design and large volumes can be stored leading to the increase in driving range. LMP, on the other hand, is a low-pressure mobile pipeline. It is an equipment and services package that provides a cost efficient gas supply for industrial and commercial energy consumers not connected to the gas network. LMP is said to counter the disadvantages of CNG transportation. Stating that they already have two projects starting this year in India and they are negotiating with a stranded gas field in Northern part of the country, Lev added that the CNG cylinder manufacturing plans involves manufacture of 10.3 lakh units per annum. "We are looking at a sales target of US $ 100 million in 2011," added Lev. 

Confidence Petroleum India started with the manufacture of LPG cylinders at Bhopal in the 1990s and has since grown to boast a market cap of approximately Rs 600 crores with 48 bottling plants in 19 states of India. The company, which is listed on the Bombay Stock Exchange, has diversified into LPG bottling assistance, LPG marketing, LPG blending, projects, logistics (transportation), high-pressure/CNG cylinder manufacturing and auto LPG dispensing stations. It has cylinder manufacturing facilities at Nagpur, Hyderabad, Khapoli, and Ankleshwar, including Asia's largest plant in Mumbai. In the process of setting up a state-of-the-art network of 200 auto LPG dispensing stations, the company is also India's largest private LPG bottler providing bottling assistance and logistical support to oil majors. 

Energtek Inc., is into development of absorbed natural gas technology and engaged in providing proprietary solutions to meet the technical and economical challenges of natural gas delivery to vehicles worldwide with a major focus on two and three wheeler market in Asia. The company also supplies natural gas to industrial and commercial consumers using pipeless natural gas bulk transportation and supply solutions. Energtek is a US-based company with subsidiaries in the US, India, Ukraine and Israel.