Indian gas company Confidence Petroleum has partnered with BW LPG to bolster LPG terminal infrastructure and downstream operations throughout India.
As part of the alliance, Norway-listed BW LPG has committed $30m to Confidence Petroleum through a preferential allotment of equity shares, amounting to an 8.5% stake on a fully diluted basis.
This investment, which was first announced in November 2023, is set to aid Confidence Petroleum's expansion of its LPG downstream assets.
BW LPG and Confidence Petroleum have also formed a JV, BW Confidence, to invest in onshore LPG import infrastructures in India.
The JV's inaugural project is under way at Jawaharlal Nehru Port Trust, Mumbai, in collaboration with Ganesh Benzoplast, to establish one of the nation's largest cryogenic LPG storage facilities.
Situated in Mumbai, BW Confidence will work closely with BW LPG's trading division, BW Product Services, and its India subsidiary, BW LPG India, to import LPG and cater to the needs of Confidence Petroleum and the broader Indian market.
With the alliance, Confidence Petroleum hopes to expand from 68 LPG bottling plants to 100, and to add 500 auto LPG dispensing stations and 200 compressed natural gas stations within the next three years.
This investment and infrastructure development are expected to generate more than 5,000 small and medium-scale entrepreneurial opportunities through retail expansion.
Additionally, it is projected to create direct and indirect employment for more than 50,000 individuals.
BW LPG vice-president & head of corporate development Iver Baatvik said: "Confidence Petroleum boasts a formidable presence in the domestic LPG industry, while BW LPG possesses deep experience in global LPG shipping and trading.
“The synergy between Confidence Petroleum's local strength and BW LPG's international reach is a catalyst to accelerate growth trajectories for both parties.”
Confidence Group chairman & managing director Nitin Khara said: "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 LPG terminal infrastructure and ever-growing downstream operations."
