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Omnitek Engineering Forms Joint Venture in Peru to Convert Diesel Engines to Natural Gas

Omnitek Engineering Corporation has formed a joint venture with local partners in Peru to convert diesel engines to operate on natural gas, as well as provide services to re-power diesel trucks and buses utilizing Omnitek’s natural gas engines.

Based in Lima, Peru, the joint venture will operate as Omnitek Peru S.A.C., with plans to expand from several initial conversion centers in Lima to numerous other locations throughout the country.

The company also said it is in negotiations with several local truck and bus dealerships to provide diesel-to-natural gas conversion services to new vehicles prior to customer delivery.

Peru represents an important growth market for our company. The country’s natural gas infrastructure system is excellent, with Peruvian bank loans readily available to fleet operators for conversions and diesel engine re-powering. In addition, support by leading energy suppliers, such as PGN and Petro Peru, will contribute to a rapid expansion of the natural gas market.

—Werner Funk, president and CEO of Omnitek Engineering Corporation

Funk noted that industry sources estimate that diesel vehicle conversions for buses during the next few years will reach at least 20,000, with truck conversions expected to reach 50,000. There are an estimated 500,000 heavy-duty engines in Peru that could be potentially converted to operate on natural gas, Funk said.

As previously announced, Omnitek appointed G&W Group, S.A. as its exclusive product distribution agent in Peru. The first shipment to G&W of conversion kits and new natural gas engines to fulfill an initial $4.5-million conversion order for a fleet of beverage and milk delivery vehicles owned and operated by Lima-based Leche Gloria, S.A. has begun, Funk said.

Comments

HarveyD

This makes sense. Peru has a lot of NG but very little Oil.

Representaciones D V SAC


Peru has a lot of NG but you only can buy NG in Lima.

You can buy diesel all over the country

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