Energtek Inc., a leading developer of Adsorbed Natural Gas (ANG) technology, announced that its subsidiary Moregastech India Private Limited anticipates reporting its first revenues during the final quarter of this year.
Moregastech India has a preliminary agreement for joint activities with an Indian entity that receives and distributes natural gas via India’s existing pipeline infrastructure. Gas from the pipeline is to be transported to regional industrial and commercial consumers using Energtek’s proprietary Low-pressure Mobile Pipeline (LMP(TM)) bulk transportation technology. Revenues will be generated from the distribution and sale of natural gas.
Potential revenues, even for the relatively small projects foreseen by the companies, are substantial. According to the press release, initial joint distribution activities are expected to generate revenues of over $5,000,000 (USD) in 2010; over $12,000,000 (USD) in 2011; approximately $20,000,000 (USD) in 2012; and increasing amounts from then on.
Energtek believes the plans for joint activity have advanced positive developments in the approval process for LMP(TM) technology by Indian authorities. The contract in place between the companies provides for the distribution of natural gas to clients in a defined geographical area in North-Central India. It is expected that clients will sign multi-year agreements for the ongoing supply of natural gas.
Because India’s current pipeline distribution network covers very narrow territories, it is incapable of delivering natural gas to most industrial and commercial consumers. Subsequently, these customers cannot be supplied with natural gas without the use of mobile bulk transportation technology. Energtek has developed custom semitrailers to enable the cost-efficient delivery of natural gas to consumers that are not connected directly to existing pipeline infrastructure.
“Natural gas has emerged as the most preferred fuel or feedstock, due to its inherent environmentally benign nature, greater efficiency and cost effectiveness,” stated Honorable Shri Dinsha Patel, Minister of State in the Ministry of Petroleum & Natural Gas. The Minister emphasized the significance of alternative sources of energy in view of the volatile global oil market.
“We have been working in India for a long time to create the conditions that will enable our subsidiary to generate significant revenues,” commented Energtek CEO Lev Zaidenberg. “We expect these efforts to start yielding results in the near future, following the final approval of our technology by Indian authorities. This initial project represents a major step for LMP(TM) technology, and will provide a model that is possible to replicate in larger scale throughout many additional regions in India.”
“We will be able to distribute the energy requirements of many consumers seeking cheaper fuel alternatives,” Zaidenberg added. “There is no doubt that the supply of cheaper and cleaner fuel delivered through Energtek’s proprietary low-pressure bulk transportation technology will be highly beneficial to local industry. India has a constantly growing number of industrial consumers, and over 80 million two- and three-wheel vehicles. Rising energy demands are necessitating the rapid implementation of alternative energy solutions such as LMP(TM).”
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