NNPC secures equipment to setup 40 new CNG stations

• Published On: 23 October 2024 at 12:01

The Nigerian National Petroleum Company Limited has purchased the necessary equipment to establish an extra 40 Compressed Natural Gas stations across Nigeria.

This step helps the Federal Government's ambition to create around 100 CNG stations over the next six months.

Oluwagbemi Michael, Programme Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, divulged these data during an event in Ogun State, according to The Punch.

He stated that during the last year, NNPC has successfully launched 12 CNG centres, six in Abuja and six in Lagos.

The statements from PCNGI are in reaction to Nigerians' complaints about the scarcity of CNG stations, which has hampered the use of CNG as an alternative fuel to petrol.

He emphasised that the government is aggressively pursuing an infrastructure development program and working with the Midstream and Downstream Gas Infrastructure Fund to increase the number of CNG stations around the country.

"About N122 billion was released two weeks ago to six commercial firms operating in the CNG distribution value chain. So, we are already taking moves in this regard to ensure that there is adequate CNG distribution infrastructure throughout the country.

"Of course, infrastructure requires time. Designing requires planning. There is a need for acquisition in terms of procurement, and there will also be installation, permitting, and other requirements. However, the situation is still unfolding.

"NNPC has erected 12 additional stations in the last six months, with six in Abuja and six now under construction in Lagos. We know that they have already purchased an additional 40 pieces of equipment for 40 different locations across Nigeria," he explained.

Oluwagbemi also stated that other private enterprises are investing in the construction of CNG infrastructure, which is likely to increase CNG availability and adoption as an alternative fuel in Nigeria.

"Bovas is doing eight." NIPCO is adding 12 to the 10 they are already undertaking. We also know that companies such as Matrix and MRS are now investing in the field. But, of course, investing requires time.

"When we began this initiative this time last year, there were roughly 13 to 20 refilling stations nationally. Today, we have fifty. I believe that in the next six months, 50 will double. So it's about consistent engagement, continual engagement, and making sure investors recognise the possibility," he explained.

He stated that by issuing one million CNG conversion kits to business drivers, the Federal Government hopes to generate up to 1.5 million extra CNG demand nationally. This program will also offer loan options to individuals who want to convert their vehicles, which he hopes would encourage more investment in the sector.

"That means that when investors recognise an opportunity, they will put their money into it. So, there is something going on: investment promotion, infrastructure development, and direct government involvement in boosting CNG usage. All of this will stimulate infrastructure development that allows for widespread distribution of CNG," he said.

When asked whether existing filling stations might be converted to CNG refilling stations, he confirmed that this is doable.

"Yes, we can already see certain add-ons. The NNPC is working on 40 add-ons, which should be operational by next year. So, add-ons are feasible. We are collaborating with the Nigerian Midstream and Downstream Regulatory Authority to re-accelerate the add-on permitting system.

"There are engineering difficulties that you must address; you must plan, develop, procure, and construct. The private sector is aware of them. The government does not own the stations. This needs to be done.

"The private sector must identify the potential and then invest. And this is what they are doing. And what we're doing is creating the possibility by completing more conversions, investing in more conversion stations, and allowing more automobiles to be converted," he said.

In response to worries that many car owners may want the government to convert their gasoline-powered vehicles to CNG owing to cost, he stated that a credit program has been devised. This scheme enables users to convert their vehicles while repaying the fees over time.

Farouk Ahmed, Chief Executive of the NMDPRA, recently raised worry that there are just 50 CNG stations to serve Nigeria's 200 million people.

In response, the PCNGI director assured Nigerians that CNG would be made available in all parts of the country, emphasising that it is safer and more cost-effective.