Energtek, Inc. , a hi-tech natural gas solutions provider, is in advanced negotiations with a large transit operator to provide ongoing supply of natural gas to a fleet of buses in one of the main cities in the Balkans. The parties are nearing completion on negotiating a long-term, 10-year fuel supply contract. Sales during the first three years of the project are expected to yield revenues of approximately USD 10 million.
Commercial terms of the retail fuel supply contract have been tentatively agreed upon between the parties. Documents are presently being submitted to the appropriate regional authorities for approval.
According to the terms of the impending agreement, Energtek will convert each vehicle in the fleet to operate on natural gas, and will then provide ongoing fuel supply to the vehicles.
In June this year Energtek’s newly formed subsidiary Energtek Herz d.o.o. Mostar initiated the construction of the first filling station connected to the transmission system in Bosnia and Herzegovina. The station located in the area of Sarajevo will enable energy consumers in Bosnia and Herzegovina who are not connected to pipeline infrastructure to begin utilizing localized, cost-efficient natural gas resources.
Energtek Herz d.o.o. Mostar signed a contract for the purchase of natural gas compressors from Italian supplier SAFE Gas Technology s.r.l. for the filling station.