The Nigerian National Petroleum Company Limited (NNPC) has announced the acquisition of equipment necessary for establishing 40 new Compressed Natural Gas (CNG) stations across the country.
This initiative aligns with the Federal Government’s plan to increase the number of CNG stations to approximately 100 within the next six months.
Oluwagbemi Michael, Programme Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (PCNGI), disclosed this development during an event in Ogun State.
He highlighted that NNPC has successfully established 12 CNG centers in the past year, with six located in Abuja and six in Lagos.
Michael’s comments come amid growing concerns among Nigerians regarding the limited availability of CNG stations, which has hindered the widespread adoption of CNG as an alternative fuel to petrol.
He reassured the public that the government is actively working on an infrastructure development program, collaborating with the Midstream and Downstream Gas Infrastructure Fund to enhance CNG distribution.
Recently, about N122 billion was allocated to six private organisations investing in the CNG distribution value chain, indicating the government’s commitment to expanding infrastructure. Michael noted that while building CNG stations takes time due to the complexities involved in planning, design, procurement, and installation, significant progress is being made.
In the last six months, NNPC has installed 12 new CNG stations, and they have acquired additional equipment for 40 more sites nationwide.
Michael pointed out that other private companies are also contributing to the expansion, with Bovas planning to establish eight stations and NIPCO adding 12 to its existing ten.
He emphasised the importance of creating demand for CNG by distributing one million conversion kits to commercial drivers, potentially generating an additional 1.5 million demands for CNG across the country. This effort, he said, would attract further investment into the sector.
Regarding the possibility of upgrading existing petrol stations to CNG refilling stations, Michael confirmed that it is feasible.
NNPC is working on adding CNG capabilities to 40 current sites, with the goal of operational readiness by next year. He underscored the need for collaboration with the Nigerian Midstream and Downstream Regulatory Authority to streamline the permitting process for these upgrades.
For vehicle owners concerned about conversion costs, Michael mentioned a credit scheme that allows individuals to finance their CNG conversions gradually. This scheme is aimed at easing the financial burden while encouraging the switch to CNG, which can significantly reduce fuel expenses.
As the government pushes to expand CNG availability, Michael assured Nigerians that efforts are underway to make CNG more accessible throughout the country, emphasising its safety and cost-effectiveness compared to traditional petrol.
