Biznextindia: Confidence Petroleum India Limited & BW LPG Limited have announced the signing of definitive Agreements, in respect of an investment in Confidence by BW LPG & a Joint Venture (JV) with Confidence; BW LPG will invest USD 30 million in Confidence through a preferential allotment of Equity shares. These shares will constitute [8.50%] of the issued and paid-up share capital of Confidence on a fully diluted basis, and BW LPG has the option to increase its shareholding.
The investment will support Confidence as it expands its capacity significantly in LPG downstream assets. Currently Confidence Petroleum India Limited is a fully integrated LPG and CNG Business player with end-to-end Infrastructure involved in various aspect of LPG business, including direct import of LPG, manufacturing LPG cylinders, LPG bottling, LPG retail through Auto LPG dispensing Stations and Packaged LPG and also in CNG retailing and CNG cylinder Manufacturing. BW LPG and Confidence have agreed to establish a 50/50 JV named “BW Confidence Enterprise Private Limited” in India. The objective is to develop LPG import infrastructure and optimize LPG seaborne imports into India. The JV has committed to a firm project involving the development and operation of a new LPG onshore import terminal in the Jawaharlal Nehru Port Trust (JNPA) in Mumbai. The JV will be based in Mumbai and has its own local organizational setup. It will collaborate with BW Product Services and BW LPG India to source LPG from the international market to meet Confidence’s growing import needs.
“Confidence has a big presence in the domestic LPG industry, and BW LPG has a strong global shipping and trading presence. Confidence’s local strength combined with BW LPG’s international presence means we have a perfect match to accelerate both parties’ growth trajectory” Niels Rigault, Executive Vice President Commercial and Chairman of the Board of BW LPG India.