The Nigerian National Petroleum Company (NNPC) Limited says it has partnered with NIPCO Gas Limited to construct 35 compressed natural gas (CNG) stations across the country.
Speaking at the headquarters of the national oil firm in Abuja, the Group Chief Executive Officer, NNPCL, Mele Kyari, said the President, Bola Tinubu, directed the oil company to source for alternative forms of fuel to cushion the effect of PMS subsidy removal.
Kyari said, “As part of NNPCL’s commitment to reducing carbon footprint and providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with Nipco Gas Limited to develop Compressed Natural Gas stations.
“This initiative is in addition to the phased deployment of 56 CNG stations planned by NNPC Retail across the country.
“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.”
He explained that under the NNPC-Nipco strategic partnership, 35 state-of-the-art CNG stations would be constructed nationwide, including three mother stations.
According to him, “Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on climate.
“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.”
He noted that to deepen and sustain the initiative, the NNPCL had floated NNPC Prime LNG Limited for domestic LNG production and supply.
Kyari said, “NNPC is also collaborating with Miju Auto Gas, a leading CNG kit Original Equipment Manufacturer based in India, to set up training and conversion centres to facilitate in-country conversion of vehicles from petrol to CNG.
“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.”
The Managing Director, Nipco Gas Limited, Nagendra Verma, said the use of gas in automobiles was safe, and promised that his firm would work with the NNPCL to deliver the project.