BW LPG and Confidence Petroleum Forge Alliance to Revolutionize LPG Infrastructure and Downstream Operations in India

L to R: Mr Bhatia BW LPG, Mr Simon BW LPG, Mr Nitin Khara, Chairman & Managing Director, Confidence Petroleum India Ltd., Mr Iver Baatvik BW LPG, Mr Sai Ganesh President, CPIL and Mrs Rajashree Telharkar, CPIL

 

Senior delegates of both the companies addressing the media today on the monumental development of alliance between BW Energy and Confidence Petroleum India Limited

Mumbai, 19 Feb 2024 — In a monumental development, BW Energy and Confidence Petroleum India Limited have united forces, aligning their business goals to bolster LPG infrastructure and downstream operations across India.

The birth of BW Confidence signifies a pivotal shift—a beacon of investment and growth within the private sector. This collaboration not only promises to overhaul downstream LPG storage and distribution but also presents an opportunity to streamline the entire spectrum of associated LPG business processes.

Shri Nithin Khara, Chairman of Confidence Group, expressed, “We are thrilled to announce this strategic joint venture with BW LPG and investment in Confidence Petroleum. This collaboration marks a significant milestone for Confidence Petroleum as we fortify our position in India’s burgeoning LPG market. We anticipate a fruitful partnership that will drive value for our stakeholders and foster mutual success.”

Mr. Iver Baatvik, Vice President & Head of Corporate Development BW LPG added, “Confidence boasts a formidable presence in the domestic LPG industry, while BW LPG possesses a robust global shipping and trading footprint. The synergy between Confidence’s local strength and BW LPG’s international presence is a catalyst to accelerate growth trajectories for both parties.”

Key Collaboration Points

The collaboration between BW and Confidence Group encompasses pivotal elements:
1) BW’s investment of 30 million in Confidence Petroleum through preferential share allotment.
2) The establishment of BW Confidence Enterprises, a newly formed entity between Confidence and BW.
3) Collaborative efforts with Ganesh Benzoplast to spearhead an onshore LPG Import terminal at JNPT India.
Key Impact Points:
1) Infrastructure Development: Highlighting the construction of a large-scale LPG storage facility, showcasing investments in critical infrastructure that will enhance the storage capacity and distribution capabilities for LPG in India.

2) Energy Security: Discussing how the increased storage capacity,ensuring a stable and reliable supply of LPG, reducing dependance during times of high demand or supply disruptions.

3) Port Development: Exploring the implications of this project at JNPT as a key maritime hub, potentially can offer more LPG & economic activities.

4) Logistics Efficiency: Emphasizing how the strategic location of the storage facility at JNPT improves logistics efficiency by reducing transportation costs and lead times for LPG imports, ultimately benefiting consumers and businesses across India.

5) Trade Partnerships: Examining the potential impact on trade relationships between India and other countries involved in the import and export of LPG, fostering closer ties and facilitating smoother trade operations.

6) Employment Opportunities: Addressing the creation of job opportunities during the construction and operation phases of the storage facility, contributing to local employment and economic development in the surrounding areas.

7) Safety and Environmental Standards: Highlighting any measures taken to ensure the safety and environmental sustainability of the storage facility, including adherence to international standards and best practices in handling LPG.

8) Government Support and Policy Alignment: Discussing any government support or regulatory frameworks that facilitate the establishment of such infrastructure projects, signaling alignment with national energy policies and objectives. Make In India

9) Market Dynamics: Analyzing how the increased storage capacity may affect market dynamics, including pricing, competition, and the overall availability of LPG for consumers and businesses in India.

This collaboration, combined with the JV & establishment of a significant LPG storage facility at JNPT, underscores the commitment of both companies to bolstering India’s energy infrastructure and addressing the growing demand for LPG in the country.