The Nigerian National Petroleum Company Limited has revealed on Thursday that the use of Compressed Natural Gas in automobiles is 40 per cent cheaper than using Premium Motor Spirit, also known as petrol.
The NNPC also stated that 100 CNG stations would be operational across the country in 12 months, as it opened 11 new CNG stations in Abuja and Lagos on Thursday.
This was disclosed in a press release signed by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye via his official X handle.
In his address at one of the locations in Abuja, the Managing Director, NNPC Retail Limited, Huub Stokman said the stations constitute a huge step in growing the national oil firm’s CNG presence in Nigeria, and it marks an important moment in its efforts to diversify Nigeria’s energy mix.
Stokman said “Adding CNG to NNPC stations provides Nigeria with an affordable alternative to existing fuel products. CNG will be about 40 per cent cheaper than petrol in Nigeria. And with continued investments, it could become a significant part of our energy mix.”
On the the expansion of the stations, Stokman said, “In the next 12 months, NNPC Retail will have launched over 100 CNG sites.”
He said NNPC was “Also supporting our implementation partners to set up two mechanical training centres combined with conversion centres in Abuja and Lagos.
“And it is fantastic that Nigeria is utilising its own natural resources to bring affordable energy to the people of Nigeria, and NNPC Retail is very proud to be part of this journey.” Nigeria has abundant gas reserves of about 209 trillion standard cubic feet.
“And it is fantastic that Nigeria is utilising its own natural resources to bring affordable energy to the people of Nigeria, and NNPC Retail is very proud to be part of this journey.”
Nigeria has abundant gas reserves of about 209 trillion standard cubic feet.
Meanwhile, the Group Chief Executive Officer, NNPC, Mele Kyari stated that the corporation and its partners were establishing infrastructures to bring CNG closer to end customers.
Kyari said, “I can see the benefits, people are saying that it works for them, it is cheaper and cleaner fuel and it is accessible. What we are going to do is to roll it out across all the states of the federation and it is already a work in progress.
“We will construct six CNG mother stations across the country between now and December and you will see this happen. We are also taking another step, we are building three LNG (Liquefied Natural Gas) stations in Ajaokuta, one of them belongs to us and the two others are done in partnerships.
“What this does is to bring gas closer to consumers because distance matters in transporting gas, which is why we are doing this so that it becomes accessible and easier. And this is for the short term because as soon as we complete the AKK pipeline it gets much closer to end users and ultimately as you reduce the distance, the cost will come down and you see cheaper fuel across the country.”
On his part, the Chairman of the NNPC Board of Directors, Chief Pius Akinyelure said increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.
Following the removal of fuel subsidy and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives, NNPC Limited has taken the lead in the deployment of Auto-CNG Stations across Nigeria.
Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for construction of thirty-five (35) CNG stations across the various geographical zones of Nigeria.
Recall In May, the federal government stated that Nigeria will save approximately $2.5 billion per year from every one million automobiles driven by CNG.
The programme director and chief executive officer, the presidential CNG initiative (P-CNGi), Michael Oluwagbemi stated this at the south-south stakeholders’ engagement meeting on the CNG initiative, held in Port Harcourt, Rivers.
According to Oluwagbemi, CNG adoption will lessen strain on foreign reserves and increase the naira’s value.
“For every 1,000,000 vehicles that Nigeria moves from petrol to natural gas, the nation is not just saving between $2.5 billion to $3 billion every year, we are also reducing the pressure on our foreign reserves, increasing the value of our currency, enhancing our export, we are creating jobs, we are enabling technology and innovation for our petroleum and clean energy sectors,” he stated.
Recall In May, the federal government stated that Nigeria will save approximately $2.5 billion per year from every one million automobiles driven by CNG.
The programme director and chief executive officer, the presidential CNG initiative (P-CNGi), Michael Oluwagbemi stated this at the south-south stakeholders’ engagement meeting on the CNG initiative, held in Port Harcourt, Rivers.
According to Oluwagbemi, CNG adoption will lessen strain on foreign reserves and increase the naira’s value.
“For every 1,000,000 vehicles that Nigeria moves from petrol to natural gas, the nation is not just saving between $2.5 billion to $3 billion every year, we are also reducing the pressure on our foreign reserves, increasing the value of our currency, enhancing our export, we are creating jobs, we are enabling technology and innovation for our petroleum and clean energy sectors,” he stated.
