HANOVER, Germany—ContiTech A.G. is expanding its hose operation to take advantage of the growing market for specialty hoses needed for raw material extraction.
The company, through Grimsby, England-based subsidiary Dunlop Oil & Marine Ltd., inked an agreement recently with Bluewater Energy Services B.V. in Amsterdam to develop and manufacture special cryogenic hoses for liquefied natural gas loading tanks.
A number of countries are converting their power stations to liquid natural gas from coal, according to A.R. Kambiez Zandiyeh, general manager of Dunlop Oil. Because of that, he said, demand is rising for the gas, particularly in Asia.
Japan and South Korea are currently the largest importers of liquefied natural gas, ContiTech said, and by 2015, it predicted that 370 million tons of the gas probably will be traded annually worldwide.
The deal with Bluewater Energy should significantly boost ContiTech's presence in the specialized but growing market, a company official said.
Bluewater Energy holds key licenses from BHP Billiton for the technology and will be responsible for the overall development of solutions to liquid natural gas transfer problems.
ContiTech has expertise and the sophisticated technology needed in the marine sector to handle development of the specialty hoses, said Hugo Heerema, president of Bluewater Energy.