Nigeria’s Compressed Natural Gas (CNG) sector has attracted a significant $980 million in investment over the last 18 months, according to Michael Oluwagbemi, CEO of the Presidential Compressed Natural Gas Initiative (PCNGI). He made this announcement at the launch of a new Portland Gas/NASENI CNG station in the Federal Capital Territory (FCT).
Rapid Growth and Investment
Oluwagbemi highlighted the impressive growth of the CNG industry, which he described as the fastest-growing sector in Nigeria.
- Massive Investment: Companies like BUA and the Nigerian Bottling Company have invested over N720 billion to acquire CNG trucks and establish 100 water stations.
- Vehicle Conversion: The number of CNG-powered vehicles has skyrocketed from just 4,000 to about 100,000 in the last 18 months.
- Cost Savings: Using CNG offers a significant advantage, as it provides a discount of approximately 90% compared to traditional fuel.
New FCT Station and Future Plans
The new Portland Gas station on the Kubwa Expressway is being called a “gas hub” because it offers a combination of services, including a refill station, an auto-conversion center, and a training center. Folajimi Mohammed, CEO, Portland Gas, added that the company has also secured approval to sell Liquefied Petroleum Gas (LPG) at the same location.
The PCNGI has subsidized the cost of converting vehicles to CNG, making it free for members of the Nigerian Association of Road Transport Owners (NARTO) and the National Union of Road Transport Workers (NURTW).
Looking to the future, the Nigerian National Petroleum Company Limited (NNPCL) is accelerating work on the Ajaokuta Kaduna Kano (AKK) gas pipeline to help distribute CNG across the country. The Nigerian Agency for Gas Engineering Infrastructure (NASENI) plans to eliminate the long queues at CNG stations within two years, a problem that currently signals the high demand for the fuel.
Government’s Stance on CNG Diversion
Despite the sector’s success, a potential problem has emerged: the diversion of CNG intended for vehicles to other uses, such as powering electricity plants. The House of Representatives has vowed to address this issue through new legislation.
Tajudeen Abass, Speaker, represented by Hon. Alexander Mascut, stated that lawmakers will work to create laws that protect the use of CNG for vehicles, ensuring the gas remains available for its intended purpose.
