Confidence Petro enters into a JV with Energtek for ANG distribution
18 March 2008
Mumbai: Confidence Petroleum has entered into a joint venture with natural gas and adsorbed natural gas (ANG) technology leader Energtek Inc of the US to provide clean and affordable pipe less natural gas supply to automotive and industrial consumers.
The main problem faced in harnessing natural gas arises from the fact that being lighter than air, it is extremely difficult to transport, and to store. Adsorbed Natural Gas (ANG) technology provides cost-effective storage of natural gas, by maximising tank storage capabilities, using activated carbons that are placed inside the tank to 'adsorb' greater quantities of gas, similar to a sponge. This makes for more efficient storage, transportation, and utilisation of natural gas, as it does not need to be pressurised to the standard 200 bar, and is stored in ANG tanks at 60 bars.
Explaining ANG technology, the company said that it creates two possibilities:
- Similar volumes of gas can be stored in the same container at a lower pressure significantly reducing the costs of refueling infrastructure, and fuel costs for the driver. Plus, lower pressure allows greater flexibility in natural gas tank design, as opposed to standard cylindrical natural gas tanks.
- Larger volumes of natural gas can be stored in the same container, at the same pressure enabling vehicles to significantly increase driving range, without increasing the size of the tank.
The two companies signed a memorandum and joint venture agreement at the press conference. In the first phase of the joint venture, Confidence Petroleum will make an investment of Rs100 crore for co-owing Energtek's subsidiary Primecyl LLC. A new, fully-owned subsidiary of Primecyl LLC, named Confi Energtek Asia Ltd will be established in India to carry the joint venture businesses in India and Southeast Asia, including Bangladesh, Indonesia, Thailand, Singapore, Philippines and Pakistan.
Primecyl LLC also owns Ukcyl Ltd., a manufacturing facility for high-pressure cylinders in Ukraine.
"We are Asia's largest LPG Cylinder Manufacturer and also India leading parallel LPG bottler in India," said Nitin Khara, chairman and managing director, Confidence Petroleum India Ltd. "Keeping in line with our growth strategy, we are aggressively planning to establish ourselves in the natural gas energy segment. This JV is one step towards achieving our goals.