NNPCL partners NIPCO On CNG For Vehicles

By Favour & Akinola Ajibade

The Nigerian National Petroleum Company (NNPC) Limited has  partnered with NIPCO Gas Limited for the deployment for Compressed Natural Gas (CNG) as alternative to Premium Motor Spirit (PMS) otherwise known as petrol.

This follows the negative effects caused by the removal of fuel subsidy by the government of President Bola Tinubu, immediately after assumption of office on May 29th this year.

Recall that the nation's oil company has for years planned to launch in full scale into CNG business, but this has remained in the realms of declaration and nothing happened despite demonstrating strong desire to explore the opportunities in that segment of the gas value chain.

NNPCL's Group Chief Executive Officer, NNPCL, Mele Kolo Kyari, who spoke at a press conference in Abuja,  yesterday (Thursday,) said the decision was a directive from President Ahmed Bola Tinubu.

He further said that the decision was borne out of efforts to cushion the impacts of petrol subsidy removal which significantly impacted on the fuel prices.

He added that the initiative was in addition to the phased deployment of 56 CNG stations planned by NNPC Retail across the country, adding that once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on climate.

Also, the Chief Corporate Communications officer, NNPCL, Garba Deen Mohammad,in a release quoted Mele Kyari as saying that the CNG infrastructure expansion initiative would be done in phases, adding that the initiative would service at least 200,000 vehicles on a daily basis.

He assured that the price of the CNG would be very affordable and Nigerian motorists would benefit from the project.

He said:”As part of the Nigerian National Petroleum Company (NNPC) Limited’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 (CNG) stations.

“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.

“Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three Mother stations.

“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,

“It 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.

“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.

“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”.

Speaking, Najendra Verma, the Managing Director of NIPCO, expressed optimism the partnership would actualize the expectations of Nigerians with regards to providing economical fuel.

Mr Verma said working with NNPC Ltd would deepen gas utilisation on Nigeria

The company has 12 years experience in the distribution of auto CNG,he said, adding that it would continuously work with NNPC Ltd towards gas market expansion.

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 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.

NNPC Limited expects further private sector participation by oil marketing companies to broaden CNG penetration and availability.

NNPC Limited remains committed to reliably delivering energy while continuously creating value for Nigeria’s prosperous future alongside our partners.