(30 November 2023)
Confidence Petroleum India Limited (“Confidence”, NSE code: “CONFIPET”, BSE code: “526829”) & BW LPG Limited (“BW LPG”, OSE code: “BWLPG.OL”) and are pleased to announce 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 (“CPIL” or the “Company”) 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 Association (JNPA) Port in Navi Mumbai, India. 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 and India’s growing import needs.
Says Mr Niels Rigault, Executive Vice President Commercial and Chairman of the Board of BW LPG India, “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.”
Says Shri Nithin Khara, Chairman of Confidence Group, “We are pleased 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 strengthen our position in India’s LPG market. We look forward to a successful and mutually beneficial partnership that will drive value for our stakeholders and contribute towards our shared success.”
The two partners reaffirm their commitment to support the Government of India’s Pradhan Mantri Ujjwala Yojana (translated as Prime Minister’s Lighting Scheme) and ensure the supply of LPG throughout India. LPG is a Green fuel which can alleviate environmental and health concerns, and support India’s transition towards a lower-carbon, gas-based economy.
Mr. Varun Parakh (Managing Director of Kero Capital Private Limited) acted as an investment banker for Confidence Petroleum India Limited.
The preferential allotment by Confidence to BW LPG is subject to the approval of Confidence shareholders and customary closing conditions.
For further information, please contact:
Head of Corporate Communications
About Confidence Petroleum
Confidence Petroleum was established in 1993 and has grown to become one of India’s largest private player in the domestic LPG industry. Confidence Petroleum is a part of the Confidence Group, which has diversified business interests in the energy sector with a significant presence in the industrial, automobile, and domestic retail space. It is the largest private sector LPG bottling company in India with 65+ bottling plants, and also have a network of 248 Auto LPG dispensing stations across India.The Company Sells packaged gas to retail consumer under its brand “Go Gas” and has a network of 2000+ dealers. CPIL is replicating its LPG model to build the CNG business and has around 32 CNG stations in Bangalore with GAIL. It also Owns 3 CNG cylinder Manufacturing units through one of its subsidiary. It Also has its own 600+ LPG fleet for LPG transportation across India.
About BW LPG
BW LPG is the world’s leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) with a total carrying capacity of over 3 million CBM. With five decades of operating experience in LPG shipping, experienced employees and an in-house LPG trading division, BW LPG offers an integrated, flexible, and reliable service to customers. BW LPG India, a subsidiary of BW LPG, was established in 2017. It is India’s largest owner and operator of Very Large Gas Carriers (VLGCs), all of which are India-flagged and India-managed. It carries approximately 20% of LPG imports into India and has approximately 30% share of the time-charter market in India.