The CanaGas business model consists of using our type-4 pressure vessel technology to gain global competitive advantage in the wholesale delivery of energy-related commodities such as natural gas, propane, LPG, propylene, ethylene, CO2, and ammonia. We will use our competitive advantage to generate revenues where others are prohibited by our patents and technical void.
To grow quickly from the certification of our 15-Bar CTMs, we will fabricate and lease our CTMs to Canadian wholesalers of propane within Canada. We do not plan to sell our CTMs. Notwithstanding, that may change as financial conditions dictate. Initial lease rates will be as low as possible to attract new customers and to grow fabrication capacity and production.
Once our fabrication production is on solid financial ground, we will expand our business to the export of propane and LPG. The selling of propane into the United States will be by rail. The selling of propane/ LPG into Mexico will start with small container ships (Feeders) out of Prince Rupert and or Vancouver (using the under-utilized DP World terminal on the Fraser River), British Columbia. As we expand, we will charter, Feedermax, and Panamax vessels.
To fabricate our pressure vessels, CanaGas will subcontract or joint-venture with an experienced filament-winding entity. Such a joint-venture will be structured to grow our own filament-winding capacity with newly-trained employees.
To fabricate our ISO-frames and install our type-4 tanks into them, CanaGas will partner with a current fabrication entity located in Alberta. The selected assembly partner will have existing fabrication facilities in Alberta. Such a partnership will enable CanaGas to efficiently fabricate its CTMs from the start (hit the ground running)! A preferred partner has already been selected and negotiations are ongoing. As production grows, the said partnership will need its own fabrication and assembly facility, designed specifically for efficient assembly-line fabrication of our CTMs.
Once our 100-Bar CTMs are certified, we will commence trade in natural gas, first domestically, then internationally. We will partner or provide service to large entities with stranded reserves that wish to monetize their currently low-valued assets.
Using the above business model and structure, CanaGas will set itself up for the best possible success through its start-up phase and through its rapid growth. We will require additional executive management to take lead roles in developing and growing our planned business.