Nagpur: In a significant development, Confidence Petroleum Limited, headquartered in Nagpur, has successfully secured a substantial investment of Rs 250 crore from the Norwegian company BW LPG. BW LPG, known for operating fleets of very large carriers in LPG shipping, is a listed entity in Norway.
According to a local media report, BW LPG has acquired an 8.5% stake on a fully diluted basis in Confidence Petroleum through a preferential allotment of equity shares.The infusion of funds from BW LPG is aimed at supporting Confidence Petroleum as it embarks on expanding its capacity in LPG downstream assets. Notably, Nitin Khara leads Confidence Petroleum.
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One of the key initiatives that the investment will bolster is Confidence Petroleum’s plan to establish a groundbreaking LPG storage terminal at Jawaharlal Nehru Port Trust (JNPT). This terminal, projected to be the largest in the country upon completion, will have an impressive capacity of 62,000 million metric tons. The report highlighted that it would be the biggest standalone cryogenic LPG terminal in the country, surpassing both public and private sector competitors. The terminal’s construction will be undertaken by a joint venture company in which Confidence Petroleum holds a stake.
Post the Norwegian investment, Confidence Petroleum has outlined ambitious plans to expand its network of auto LPG and CNG retail stations, along with bottling units, across the nation. The company aims to increase its current bottling plant units from 68 to 100. Additionally, within the next three years, Confidence Petroleum intends to add 500 auto LPG dispensing stations and 200 CNG outlets, projecting an expected revenue of Rs 10,000 crore.
Moreover, Confidence Petroleum has formed a joint venture with BW Logistics, establishing an independent entity named BW-Confidence. This joint venture, in turn, has partnered with Ganesh Benzoplast for the setup of the LPG storage terminal at JNPT, involving an investment of Rs 650 crore. The facility is slated to be operational by 2025-26 and will focus on building onshore imports infrastructure and downstream marketing of products.
Confidence Petroleum, primarily engaged in LPG handling, bottling, and auto LPG and CNG dispensation outlets, recently inaugurated a composite cylinder plant at Butibori near Nagpur. These cylinders have the unique capability of storing green hydrogen, showcasing the company’s commitment to innovation and sustainability in the energy sector.
