Russia's Gazprom Forms JV for NGVs
Russia's Gazprom has formed a joint venture with Italian gas fuel systems manufacturer Cavagna group to produce components for natural gas vehicles (NGVs), Russian state records show.
The venture, called Gazprom Gas Motor Systems, was registered in St Petersburg on May 28 with an authorised capital of rubles 152mn ($2.2mn). Gazprom has a 65% stake in the company while Cavagna has 35%. The pair signed a memorandum on creating the joint venture in October last year.
Gazprom wants to expand the market for NGVs in Russia to generate extra gas demand. It operates its own fleet of NGVs and a chain of filling stations, reporting a 30% increase in gas sales at these facilities last year.