Compressed Natural Gas (CNG), a less expensive alternative, would be made available by Nigerian National Petroleum Company (NNPC) Limited as motorists struggle with the high cost of Premium Motor Spirit (PMS) as a result of the President Bola Ahmed Tinubu government’s elimination of subsidies.
Mele Kyari, the group chief executive officer of NNPC, said in Abuja that the development is the result of a new cooperation with NIPCO Gas Limited.
“The partnership is part of the company’s commitment to reducing its carbon footprint and providing motorists in the nation with less expensive alternative fuel, which will significantly lower the cost of transportation and foster sustainable national economic growth,” the executive added.
According to the announcement, 35 cutting-edge CNG stations, including three Mother stations, would be built nationally as part of the NNPC-NIPCO strategic cooperation.
When fully operating, the stations will be able to service more than 200,000 vehicles every day, greatly lowering carbon emissions and their accompanying climate effect.
He described how the project would be implemented in stages. By the first quarter of 2024, the first phase, which consists of 21 CNG stations, will provide intra-city transportation. The second phase, which consists of 35 CNG stations, will support inter-city transformation by the first quarter of 2025.
“Through this plan, Nigerians will get access to cheaper gasoline, lower transportation costs, lower carbon emissions, new business value chains, and streams of employment prospects, among other advantages thanks to the country’s enormous natural gas resources.
NNPC Limited anticipates increased private sector involvement from oil marketing firms to increase the supply and penetration of CNG.
The state-owned oil corporation asserted that it is still dedicated to consistently generating wealth for a prosperous future for Nigeria along with its partners.
He mentioned that in addition to working with Miju Auto Gas, a well-known CNG kit Equipment Manufacturer (OEM) with headquarters in India, the NNPC is also setting up training and conversion facilities to make it easier for local car conversions from gasoline to CNG.
According to Kyari, NIPCO Gas Limited has converted more than 7,000 vehicles to run on CNG and manages 14 CNG stations across Nigeria.
The managing director of NIPCO, Nagendra Verma, also made a statement, claiming that working with NNPCL would assist the nation’s gas usage increase.
NIPCO has been distributing auto CNG for 12 years, according to Verma, who also noted that the company would continue to collaborate with NNPCL to expand the gas market.
