In search of a solution to the high cost of petrol, instigated by the removal of fuel subsidy that has for years ensured that Nigerians purchase petroleum products at cheap rates, the Nigerian National Petroleum Company (NNPC) Limited is teaming up with NIPCO Gas Limited to construct 35 compressed natural gas (CNG) stations across the country.
The move follows the announcement by President Bola Tinubu on Tuesday, during his nationwide broadcast, that his administration has made provision to invest N100 billion between now and March 2024 to acquire 3,000 units of 20-seater buses powered by compressed natural gas (CNG).
The initiative is geared toward reducing the cost of transport, by offering commuters cheaper alternatives to expensive fuel.
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Compressed Natural Gas is a viable fuel substitute for conventional petrol, diesel, and liquefied petroleum gas (LPG). It finds application in both conventional internal combustion engine vehicles as well as purpose-built CNG vehicles.
In a statement issued on Thursday, Garba Deen Muhammad, the spokesperson for NNPC, revealed that the collaboration is focused on offering a more affordable alternative fuel option to Nigerian motorists, aligning with President Bola Tinubu’s directive.
“As part of the Nigerian National Petroleum Company (NNPC) Limited’s commitment to providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with NIPCO Gas Limited to deploy compressed natural gas (CNG) stations across the country,” the statement reads.
“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.”
Muhammad explained that as part of the NNPC-NIPCO strategic collaboration, a total of 35 modern CNG stations, including three primary stations, will be built across the country. This project will be executed in a phased approach, according to the NNPC spokesperson.
“Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation,” he said.
“The first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024; while the second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by late 2024. This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country.
“This 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 emissions, create new business value chains and streams of job opportunities.”
Per the statement, NIPCO Gas Limited presently operates 14 CNG stations across Nigeria and has successfully converted more than 7,000 vehicles to utilize CNG as fuel.
The national oil company further emphasized that NIPCO’s strong technical expertise and hands-on experience will enhance the effectiveness of the initiative and enhance its favorable contributions to the country’s economy.