The Nigerian National Petroleum Company Limited (NNPC) and NIPCO Gas Limited, have disclosed a plan to ramp up the first phase of the Compressed Natural Gas (CNG) penetration plan in the first quarter of 2024.
Nigeria is endowed with over 200 Trillion Cubic Feet (TCF) of proven natural gas reserves, from which numerous economic value such as gas-to-power, petrochemicals/fertiliser industries and the transport sector using CNG is ordinarily derivable.
CNG is seen as a suitable and cheaper alternative fuel for motorists with lower emission impact and is usually cheaper and a more environmentally friendly fuel to supplement petrol consumption.
Briefing journalists at the NNPC headquarters in Abuja, the Group Chief Executive Officer of the national oil company, Mele Kyari, stated that both partners will leverage natural gas resources and technical expertise to provide an end-to-end alternative fuel solution to enable motorists to use CNG to fuel their vehicles.
The partnership, Kyari said, will see the rollout of 35 CNG stations across the country to cater for refuelling of around 200,000 vehicles in the first instance.
In addition, the GCEO noted that the move also underscored the NNPC’s commitment to reducing carbon footprint and providing cheaper alternative fuel to motorists.
“The company is happy to announce a strategic partnership with NIPCO Gas Limited to develop Compressed Natural Gas (CNG) stations. This initiative is in addition to the phased deployment of 56 CNG stations planned by NNPC retail across the country.
“This landmark collaboration aims to expand our CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars and Keke NAPEP, which will significantly reduce the cost of transportation and engender sustainable national economic growth,” Kyari, who was flanked by his lieutenants noted.
Under the NNPC-NIPCO strategic partnership, he noted that 35 state-of-the-art CNG stations will be constructed nationwide, including three mother stations.
Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on climate.
In his remarks, the Managing Director of NIPCO Gas, Nagendra Verma, explained that with its over 12 years of experience in auto CNG distribution in Nigeria, the company will continue to show support for the programme.
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