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By Adewale Sanyaolu
In a move to reduce the country’s over reliance on imported petroleum products, reduce rising subsidy costs and demand for foreign exchange, NIPCO Gas Limited, has disclosed plans to deepen the use of Compressed Natural Gas (CNG) across the country.
Managing Director, NIPCO Gas Limited, Mr. Nagendra Verma, stated this at an interactive session with the media in Lagos at the weekend.
He averred that NIPCO Gas is sure that with the continuous focus and push by government, AutoCNG will become the choice fuel for Nigeria because it has the potential to reduce pressure on importation as well as on forex.
He disclosed that NIPCO Gas as part of its CNG plant expansion, aims to complete four CNG stations in Lagos by May 2024, adding that the four CNG stations planned for Lagos are part of an expanded partnership with the Nigerian National Petroleum Company (NNPC) Limited for the construction of 35 AutoCNG plants in phased manner.
He said that location for 19 CNG stations have been identified and have received approval from Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) and other statutory authorities.
Under current government directives, he said the NNPC partnership with NIPCO Gas for the expansion of AutoCNG stations across various states of Nigeria comes with a huge sense of responsibility and commitment for Nigerians and government.
Verma stressed that NIPCO Gas operates 15 AutoCNG stations across Nigeria and that CNG vehicles from Lagos can travel up to Abuja and Kaduna by taking CNG from the in-between NIPCO Gas AutoCNG stations. He assured that soon, motorists can travel across every nook and cranny of Nigeria.
‘‘NIPCO Gas Limited has been involved in AutoCNG development and expansion since 2009. We initially started with Benin City and expanded the AutoCNG network to Ibafo in Ogun State and later-on to Kogi State. With the initiatives and clear mandate by current government, AutoCNG network further expanded to Abuja Ibadan in Oyo State and Oron in Akwa Ibom State.
“NIPCO Gas is honored with this trust and belief by the government and NNPC and have assured that we will not leave any stone unturned to make this AutoCNG expansion plan a reality which will relieve citizens of the pain they are going through presently.
“For making this AutoCNG expansion project a reality, we are getting due support and guidance from all including but not limited to PCNGI, NMDPRA, SON, NNPC, other ministries, departments and media too who are also keen to see this asreality in near future,” he said.
The NIPCO Gas boss, however, noted that distribution and AutoCNG projects are highly capital-intensive projects which require huge investment and the highest level of commitment and perseverance, assuring that with support from all and with continuous push from the Presidency, the company will make it a reality.
On gas infrastructure development, he revealed that NIPCO Gas in addition to AutoCNG is also expanding gas transportation pipeline and distribution network towards Ibadan and in Lekki Free Zone. These projects, he said, requires huge investment and high gestation period and that once the projects are commissioned, it will help in deepening the utilisation of indigenous gas which still remains under-utilised.
‘‘Presently, for cars, taxis and tricycles, AutoCNG is sold at NGN200/scm against the petrol price of NGN610/litre in Lagos and NGN230/scm against the petrol price of NGN670/litre in Abuja.
“Similarly for heavy commercial vehicles; AutoCNG is sold at NGN260/scm against the AGO price of NGN1250/litre in Lagos and NGN290/scm against the AGO price of NGN1300/litre in Abuja,” he said.
He averred that NIPCO Gas is sure that with the continuous focus and push by current government, AutoCNG will become the choice fuel for Nigeria which has the potential to reduce the pressure on importation as well as on forex.
