NNPC Limited (NNPCL) has partnered with NIPCO Group to deploy 35 Compressed Natural Gas (CNG) stations nationwide.
NNPCL Group Chief Executive Officer, Malam Mele Kyari said the initiative is in addition to the phased deployment of 56 CNG stations planned by NNPCL Retail across the country.
He said at a briefing that once the partnership takes off, the stations could serve over 200,000 vehicles daily.
Kyari said: “The fuel subsidy removal has caused some spike in the cost of premium motor spirit (PMS) (or petrol).
“To this end, we have engaged our principal partner in the CNG business in the country – NIPCO Gas Limited.
“Under the NNPC/NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three other stations.
“Once fully operational, the stations can serve over 200,000 vehicles daily, thereby reducing the cost of automobile fuel in Nigeria and reducing the cost of transportation.”
He noted that the market will determine the price of the CNG, stressing that it would still be three times cheaper than the price of petrol.
According to him, CNG is safe and is widely used by the heavily populated India and Pakistan, especially for fueling tricycles.
Kyari said many kits conversion companies have agreed to come and establish their firms in Nigeria.
Kyari said the landmark collaboration aims to expand CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars and tricycles, which will significantly reduce the cost of transportation and engender sustainable national economic growth.
According to him, under the NNPC-NIPCO strategic partnership, 35 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.
He said the project would be rolled out in phases.
The first phase comprising 21 CNG stations will support intra-city transportation and be ready by the first quarter of 2024.
The second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by the first quarter of 2025.
NNPCL, Kyari added, has floated NNPC Prime LNG Limited for domestic LNG production and supply.
He added that NNPCL is also collaborating with Miju Auto Gas, a leading CNG kit Equipment Manufacturer (OEM) based in India, to set up training and conversion centres to facilitate in-country conversion of vehicles from petrol to CNG.
Kyari said NIPCO Gas is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG.
He added that NIPCO’s technical competency and field experience will bolster this initiative’s success and amplify its positive impact on the nation’s economy.
According to him, this forward-thinking initiative will leverage Nigeria’s abundant natural gas resources to bring multiple benefits to Nigerians, including access to cheaper fuel, reduced cost of transportation, reduced carbon emission, create new business value chains and streams of job opportunities.
NIPCO Managing Director, Mr Mahendra Verma, acknowledged a long-standing relationship with NNPCL.
