Energtek, DML form JV to market ANG technology in Indonesia, Malaysia and Singapore

Energtek Inc, a U.S.-Israeli developer of absorbed natural gas (ANG) storage technology, and DML PTE Ltd of Indonesia said on Wednesday they had formed a US$25 million joint venture to commercialize the technology in southeast Asia

The JV will enable new markets of vehicle owners and industrial businesses to use Natural Gas as an energy source in Indonesia, Malaysia and Singapore. The commercial technology is cost- efficient, providing tremendous savings as compared to gasoline and oil, the statement said.

Energtek will have 51 percent shares in the JV with the Indonesian partner controlling the balance. DML will invest $2 million, and has agreed to finance the JV's business operations with an additional $23 million. The JV will receive exclusive rights to operate in the area.

Several Natural Gas bulk transportation projects utilizing Energtek's proprietary Low-pressure Mobile Pipeline (LMP) technology have already been planned following extensive feasibility studies and will proceed to commercial stages in the coming months, the statement said. Other projects will focus on the conversion and subsequent ongoing supply of Natural Gas to both large and small vehicles, it added.

Future projects will focus on the production of Natural Gas directly from refuse, which can then be supplied to industrial businesses as an energy source, and on the manufacture of special ANG ships.

Projects scheduled by the Joint Venture are quickly expected to surpass $100 Million in revenues. The market for such projects is quite large due to rapidly developing industrial enterprises in the three countries, it said. (alex)