FG mulls establishing CNG park in Ajaokuta steel company

The federal government says it will establish a compressed natural gas (CNG) park in the Ajaokuta Steel Company, Kogi state.

Shuaibu Audu, minister of steel development, spoke in a statement signed by Lizzy Okoji, his special assistant on media, on Monday in Abuja.

President Bola Tinubu approved the establishment of the presidential compressed natural gas initiative (PCNGI) on August 18, 2023, as part of his palliative intervention aimed at cushioning the effects of petrol subsidy removal faced by Nigerians.

Speaking on the initiative, the minister said it was part of the president’s ‘renewed hope agenda’ to address the situation of Nigerians.

“This goes to demonstrate the commitments of the president to easing the plights of citizens as a result of the removal of fuel subsidy,” he said.

“We are also joining the rest of the world in transiting towards green, sustainable, and cost-effective sources of energy.

“As stakeholders in P-CNGi, the Ministry of Steel Development also has plans for a proposed CNG park within the territories of the Ajaokuta Steel Company Ltd (ASCL).

“The CNG Park to be located in ASCL will benefit from existing infrastructure, like the natural gas line from Warri to Ajaokuta, the Metallurgical Training Centre.

“There are also the engineering workshops and the 10,000 housing estates in Ajaokuta environs, among others.”

Audu commended the Nigerian army for introducing CNG vehicles for its operations under the ‘Auto Switch Kick-off’ pilot programme, which is driven by the PCNGI.

He urged other organisations to adopt the technology due to its cost-effectiveness and to promote a sustainable, healthy environment.

The federal government had said the CNG initiative would revolutionise transportation by deploying over 11,500 new CNG-enabled vehicles and providing 55,000 conversion kits for existing petrol-dependent vehicles.