NNPC, NIPCO plan to develop Nigeria gas project, for energy stability
By SUMAYYAH ADEFAKA
NNPC Limited has announced a partnership agreement with NIPCO Gas Limited to set up modern Compressed Natural Gas, CNG, stations across the country, as part of efforts to reduce the cost of fueling vehicles following the removal of petrol subsidy.
NNPCL Group CEO, Mr. Mele Kayri at press briefing on Tuesday in Abuja said the stations would have the capacity to fuel 200,000 vehicles daily.
He explained that the initiative would reduce the cost of fueling vehicles by almost a third.
He noted that the initiative “is in addition to the phased deployment of 56 CNG stations planned by NNPC Retail across the country”.
He explained further that “the project will 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; While the second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by the first quarter of 2025.
“To deepen and sustain this initiative, NNPC Ltd. has floated NNPC Prime LNG Limited for domestic LNG production and supply. NNPC 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”.
He pointed out that “NIPCO Gas Limited is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG. NIPCO’s technical competency and field experience will bolster this initiative’s success and amplify its positive impact on the nation’s economy.
“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”.
On his part, NIPCO Gas Limited Managing Director, Mr. Nagendra Verma said the company has a track record of CNG distribution in the country, assuring that facilities will be in place to convert vehicles and make CNG available to motorists.
