Italian gas grid company Snam (SRG.MI) has launched a 33 million euro (£29.35 million) tender to convert its car fleet to natural gas in a sign of its commitment to develop gas fuelling stations in the country. The move comes as utilities across Europe race to embrace the fast-growing business of rolling out charging stations to meet carmaker pledges to move fleets to electric drives. Snam, controlled by state lender CDP, said in a tender it had set a Feb. 16 deadline for bids from European companies to convert its 1,500 vehicle fleet to natural gas, according to Reuters.

The supply contracts will be for three years, it said.

Europe’s biggest gas pipeline operator has pledged to spend 150 million euros to build 300 new gas fuelling stations to beef up the country’s existing 1,100 points.

Italy is the leading European market for natural gas-fuelled cars, with motorists guzzling more than 1 billion cubic metres in 2015 and about 1 million vehicles in circulation.

Snam CEO Marco Alvera told Reuters that by adding more stations the market could expand to 2-3 million vehicles and would be able to complement electric cars.

“I drive a hybrid car, and I think the future will be gas and electricity – plug-in hybrids,” he said.