FG Commissions 321,000 SCMD LCNG Facilities in Kano, Targets Wider Access for Nigerians

The Federal Government has commissioned two Liquefied to Compressed Natural Gas (LCNG) facilities with a combined capacity of 321,000 standard cubic metres per day (SCMD) in Kano, alongside a separate last-mile retail station.

The Federal Government has commissioned three Liquefied to Compressed Natural Gas (LCNG) facilities with a combined capacity of 321,000 standard cubic metres per day (SCMD) in Kano, alongside a separate last-mile retail station.

The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, Ph.D., commissioned the facilities on Tuesday.

The three gas infrastructure facilities were developed by Rolling Energy with support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

At Tamburawa, in Dawakin Kudu Local Government Area, the project comprises a 300,000 SCMD LCNG distribution hub providing integrated LNG storage, regasification and CNG distribution capacity, including the ability to supply daughter stations.

It also includes a last-mile retail station designed to ensure that consumers directly benefit from the infrastructure.

In Hotoro, Tarauni Local Government Area, a 21,000 SCMD LCNG daughter and retail station, designed to bring gas closer to end users, was also commissioned on the same day.

Kano gas facilities to deepen domestic access

According to Ekpo, the three facilities demonstrate the government’s domestic gas agenda, which is focused on building infrastructure to receive and distribute gas while creating last-mile outlets that make the product accessible to Nigerians.

• He said the facilities represent a commitment to deepening gas penetration in Kano and its environs, providing cleaner energy alternatives, supporting businesses and transportation, stimulating economic activity and creating opportunities.
• He added that the development would bring relief to Nigerians through greater access to domestic gas.
• Ekpo also highlighted the critical role of the MDGIF in catalysing the private capital and infrastructure required to translate government policies into benefits that Nigerians can see, use and feel.

Speaking at the event, Oluwole Adama, Executive Director of MDGIF, explained that the commissioned facilities can refuel up to “2,500 cars and tricycles daily”, as well as up to 200 trucks.

He said that for taxi drivers who start work before dawn, the facilities would mean less time spent queuing and more time on the road earning a living.

• “Here in Kano, a litre of petrol sells for about N1,420, while the same amount of energy from CNG costs about N600. That is less than half the price,” he added.

Adama explained that the value of the stations goes beyond the equipment installed, extending to the services and opportunities they can sustain.

He said President Bola Ahmed Tinubu had placed renewed emphasis on domestic gas utilisation and cleaner transportation alternatives, leading to the inauguration of the MDGIF Governing Council in February 2024.

He added that the President encouraged investment in the gas business by signing Executive Order 40, which, according to him, has continued to provide presidential direction for gas projects.

Adama noted that the Fund’s next task is to ensure a dependable gas supply chain, safe operations, proper maintenance and increased utilisation.

He encouraged fleet owners, transport unions, businesses and investors to make full use of the facilities.

The Founder and Chief Executive Officer of Rolling Energy Limited, Mr. Mubarak Danbatta, highlighted that the company’s joint venture partnership with MDGIF is developing an integrated energy ecosystem.

According to him, the ecosystem comprises ten gas stations, eight planned RLNG gas-to-power facilities and a comprehensive LNG and CNG transportation network spanning nine LCNG facilities across Kano, Kaduna, Borno and Abuja.

MDGIF backs 200 gas infrastructure projects

In August 2026, Adama disclosed that the Fund was supporting about 200 gas infrastructure projects nationwide to unlock Nigeria’s 200 trillion cubic feet of gas reserves.

• Adama made the disclosure during a fireside chat at the West African Refined Fuels Market (WARFM) Conference in Abuja.
• He highlighted that the development was part of the Fund’s strategy to bridge a reported $20 billion annual deficit in Nigeria’s gas infrastructure.

The projects are expected to support the development of the infrastructure required to improve gas utilisation and expand access across the country.

Nigeria records 106 operational CNG stations

Recently, the Federal Government disclosed that about 106 Compressed Natural Gas (CNG) refuelling stations were operational across the country, with $2.6 billion in private-sector investments coming in to expand the project.

• The Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG), Ismaeel Ahmed, also disclosed that President Bola Tinubu had ordered another round of about 500 refuelling infrastructure units to be established through the MDGIF.
• Nigeria has the largest gas reserves in Africa and ranks among the top 10 countries globally in terms of proven gas reserves.

However, a significant portion of these reserves remains untapped due to inadequate investment in infrastructure.

The expansion of LCNG and CNG facilities is part of broader efforts to improve domestic gas utilisation, provide alternative energy sources and make natural gas more accessible to households, businesses and the transportation sector.