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.
CNG is a fuel that can be used in place of petrol, diesel, and liquefied petroleum gas (LPG). It is used in traditional petrol/internal combustion engine automobiles or specifically manufactured vehicles.
Garba Deen Muhammad, NNPC’s spokesperson, in a statement on Thursday, said the partnership aims to provide cheaper alternative fuel to motorists in Nigeria in compliance with President Bola Tinubu’s directive.
“As part of the Nigerian National Petroleum Company (NNPC) Limited’s commitment to providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with NIPCO Gas Limited to deploy compressed natural gas (CNG) stations across the country,” the statement reads.
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“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.”
Muhammad said under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three mother stations.
The NNPC spokesperson said the project would be rolled out in phases.
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“Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation,” he said.
“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 late 2024. This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country.
“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.”
According to the statement, NIPCO Gas Limited is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG.
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The national oil firm added that NIPCO’s technical competency and field experience will bolster the initiative’s success and amplify its positive impact on the nation’s economy.
On Tuesday, in a nationwide broadcast, President Tinubu said his administration has made provision to invest N100 billion between now and March 2024 to acquire 3,000 units of 20-seater buses powered by compressed natural gas (CNG).
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