Italian natural gas infrastructure company SNAM logo is seen in the headquater in San Donato Milanese, near Milan, Italy, April 27, 2016. REUTERS/ Stefano Rellandini
MILAN (Reuters) – Italian gas group Snam (SRG.MI) has a deal with Seat, a unit of German car maker Volkswagen VOWD_p.DE, to boost the use of natural gas to power cars, the two companies said on Monday.
Snam and Seat will explore ways to develop fuel station networks and create new products.
“For SEAT, one out of every five vehicles sold in Italy uses compressed natural gas (CNG),” Seat President Luca de Meo said, adding that the deal would “further enhance the development of CNG in Italy and export this success case to other countries.”
Italy has become the leading market for CNG technology, accounting for 55 percent of all vehicles sold in Europe this year powered by the fuel.