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By Adewale Sanyaolu
The Managing Director and Chief Executive Officer of Portland Gas Limited, Mr. Folajimi Muhammed, has disclosed that the company, in partnership with the Federal Government through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), has invested about $4 million in the development of Compressed Natural Gas (CNG) infrastructure.
According to him, the investment is aimed at deepening gas utilisation and improving energy access across Nigeria.
Speaking at the commissioning of the company’s Mother Station in Ojota, Lagos, at the weekend, Muhammed said the project is structured as a joint venture in which Portland Gas holds a 60 per cent equity stake while the Federal Government, through MDGIF, owns the remaining 40 per cent.
He added that, the initiative involves the construction of a Mother Station and Daughter Stations in Lagos and Abuja to facilitate the distribution of CNG through a virtual pipeline system.
He explained that the facility commissioned represents the first phase of the project and would serve as the central hub for supplying gas to downstream stations.
“The project is a collaboration between Portland Gas and the Midstream and Downstream Gas Infrastructure Fund. Portland Gas has contributed 60 per cent equity while the Federal Government has come in with 40 per cent. Our mandate is to build a mother station here and daughter stations in Lagos and Abuja. What we are commissioning today is the first part of that project, which is the mother station,” he said.
Muhammed noted that the facility currently has an above-ground storage capacity of 96,000 standard cubic metres per day (SCMD), while the full mother station is designed to handle about five million standard cubic feet of gas per day.
He said the station is presently supplied through a virtual pipeline arrangement whereby gas is sourced from a third-party facility and transported to the site, pending connection to the Ajaokuta-Kaduna-Kano (AKK) gas pipeline network.
“At the moment, we are sourcing gas from a third party, which is why we call it a virtual pipeline. In the future, we will tap directly into the AKK pipeline and become our own supplier. This will enable us to supply our daughter stations directly and also serve other gas consumers,” he added.
Addressing concerns over persistent queues at CNG stations across the country, Muhammed said increasing the number of refuelling outlets remains the most effective solution.
“The opening of more stations will naturally reduce waiting time and queues. The more stations we build and commission, the more available gas becomes to consumers,” he said.
He revealed that Portland Gas already operates stations in Ajah, Lagos, and Kubwa, Abuja, while additional facilities are planned for Otako and Gwagwalada in the Federal Capital Territory.
On access to funding from the MDGIF, Muhammed described the application process as rigorous but necessary to ensure that only serious investors benefit from the intervention fund.
“It was a very rigorous process. We had to provide extensive documentation and demonstrate that we had already committed substantial resources to the project before accessing the fund. The fund managers needed evidence that we were capable of executing the project,” he explained.
While advocating a more flexible approach for proven investors, he cautioned against lowering standards to the extent that funds are disbursed to entities lacking the capacity to deliver.
“There is a delicate balance. The fund should not be given to people who may not perform simply because they apply. However, companies that have demonstrated commitment and capacity should enjoy a more streamlined process,” he said.
Muhammed also urged greater support for innovative gas distribution models, including mobile refilling units and daughter stations, to accelerate the penetration of CNG across the country.
According to him, such initiatives would complement the Federal Government’s gas expansion agenda and help position natural gas as a viable alternative fuel for transportation and industrial activities.
Also speaking, the Executive Director of MDGIF, Mr. Oluwole Adama, said the Fund remains committed to supporting projects that drive energy access, economic growth, and national development.
