• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Energtek's Subsidiary Moregastech India Anticipates Reporting First Revenues in 2009

Posted on: Thursday, 7 May 2009, 06:30 CDT

DELHI, India, May 7 /PRNewswire-FirstCall/ -- Energtek Inc., a world leader in the development of Adsorbed Natural Gas (ANG) technology, announced today that its subsidiary Moregastech India Private Limited expects to report its first revenues during the final quarter of 2009.

Moregastech India has a long-standing 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 utilizing Energtek's proprietary Low-pressure Mobile Pipeline (LMP(TM)) bulk transportation technology. Revenues are projected to be generated from the distribution and sale of natural gas.

Prospective revenues for the contract, even for the relatively small projects foreseen in the forecasts of the companies, are significant. 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 thereafter.

The plans for joint activity have advanced following positive developments in the approval process for LMP(TM) technology by Indian authorities. The agreement in place between the companies provides for the distribution of natural gas to clients in a defined geographical area in North-Central India. Clients are expected to sign multi-year agreements for the ongoing supply of natural gas.

India's current pipeline distribution network covers very narrow territories and is unable to deliver natural gas to most industrial and commercial consumers. 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 importance of alternative sources of energy in view of the volatile global oil market.

Natural gas is a cost-effective alternative to oil that also provides a significant ecological improvement through the reduction of hazardous emissions. Natural Gas can be delivered for a price significantly lower than diesel, gasoline or LPG.

"We have been working in India for a long time to create the conditions that will enable our subsidiary to generate significant revenues," said 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)."

About Energtek

Energtek develops and applies proprietary low-pressure storage technology to provide complete well-to-wheel pipeless Natural Gas supply solutions to industrial consumers and fleets of small vehicles. Energtek's Natural Gas solutions reduce pollution and alleviate consumer energy costs. Energtek provides competitive bulk transportation solutions to industrial users and a profitable alternative motor fuel solution for 2- and 3-wheel vehicle drivers in Asia. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit http://www.energtek.com

Forward-Looking Statements

This release contains forward-looking statements. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully all risks and uncertainties, including those identified in this release and other matters set in material publicly released by Energtek. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.

Contacts: Tel: +1-212-999-6202, IR@energtek.com

SOURCE Energtek Inc.

Source: PR Newswire

More News in this Category