The Nigerian federal Government has commissioned a 5.2 million standard cubic feet per day, mmscfd Compressed Natural Gas, CNG, plant in Lagos.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who commissioned the plant at the Isolo Industrial Area, Ilasamaja in Lagos, on Thursday, said the occasion, under the theme “From Gas to Prosperity: CNG for All,” represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.
“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” the Minister stated.
Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally, as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions.
“While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10 percent less CO2 than comparable gasoline-powered passenger vehicles,” the Minister added.
Earlier in his remarks, the GCEO NNPC Limited, Mallam Mele Kyari, said that to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC has reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service station plants and stations of 5.2 mmscfd capacity each, in selected locations spread across the six geopolitical zones, including the FCT, to ease access to bulk CNG.
He stated that the move was in addition to NNPC Retail’s phased deployment of CNG in over 100 stations across the country as well as other Joint Venture partnerships on CNG.
In particular, Kyari revealed that the commissioning of the NNPC CNG Station in Ilasamaja, Lagos, was part of NNPC’s efforts to grow domestic gas supply and utilization by deploying gas infrastructure nationwide.
He said the Petroleum Industry Act (PIA) explicitly mandated NNPC to promote domestic gas utilization, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilize our gas resources for industrialization, power generation and economic prosperity for all,” Kyari stated.
In his speech, the Lagos State Governor, Babajide Sanwo-Olu, said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation, and industrialization, in the State.
He said in demonstration of its resolve to champion CNG utilization across Lagos State, the State Government has concluded plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will commence operations before the end of the year.
The Ogun State Governor, Dapo Abiodun, represented by the State Commissioner of Environment, Mr. Ola Oresanya, said the State is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the State and beyond.
In his goodwill message, the Chief Executive of the Presidential CNG Initiative, Engineer Michael Oluwagbemi, described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.
The development comes as CNG policy full implementation garners momentum in Nigeria.
In April 2024, the Nigerian government fixed the price of Compressed Natural Gas at $1.57MMBtu.
President Tinubu had ordered ministries, agencies and parastatals to purchase CNG vehicles.
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