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Be the first with the news that moves the market- Westport Fuel Systems’ (WPRT) subsidiary, MTM, has signed a new supply contract with Algerian state-owned oil and gas distributor NAFTAL
- Under the terms of the deal, MTM will supply 30,000 liquified petroleum gas (LPG) systems throughout the rest of 2020 and into 2021
- The agreement builds on a longstanding relationship which has seen the supply of more than 90,000 LPG systems over the last four years
- Algeria is seeing a growing demand for LPG conversions, driven largely by government efforts to reduce imports of petrol and diesel
- Westport Fuel Systems (WPRT) is currently down 3.2 per cent and is trading at C$2.11 per share
Westport Fuel Systems’ (WPRT) subsidiary, MTM, has signed a new supply contract with Algerian state-owned oil and gas distributor NAFTAL.
Under the terms of the deal, MTM, a wholly owned Italian subsidiary of Westport, will supply 30,000 liquified petroleum gas (LPG) systems to NAFTAL, and agency for the distribution and sale of oil and gas.
The systems will be delivered throughout the rest of 2020 and into 2021, building on a long-standing relationship that has already seen the supply of more than 90,000 LPG systems over the last four years.
NAFTAL is a branch of SONATRACH, a major global energy supplier and the largest hydrocarbon company in Africa, which works to ensure future energy security for Algeria.
The country has been experiencing a steep growth in demand for LPG conversions, driven largely by government efforts to reduce imports of petrol and diesel, instead opting to promote LPG as a clean, abundant and widely available national resource.
Mustapha Nouri, Director of Branche de Commercialisation of NAFTAL, said the organisation is committed to achieving the objectives set by the Algerian government to expand the use of LPG fuel.
“The new contract assures the continuity of supply of LPG kits to the NAFTAL network of workshops providing highly reliable and high-performance equipment,” he added.
According to NAFTAL, Algeria has an existing fleet of roughly 320,000 LPG vehicles which are supported by 680 filling stations, representing 5.4 per cent of the overall market share. However, by 2024, this is expected to increase to 1.3 million LPG vehicles and 1,600 filling stations, resulting in an approximate market share of 19 per cent.
Massimiliano Fissore, Executive Vice President of Transportation at Westport Fuel Systems, noted that the contract is further evidence of the solid partnership between MTM and NAFTAL. He said it was a sign of the quality and performance of our cost-competitive, clean LPG systems.
Westport Fuel Systems (WPRT) is currently down 3.2 per cent and is trading at C$2.11 per share at 2:59pm EDT.
