The Federal Government has launched a Compressed Natural Gas plant with a capacity of 5.2 million standard cubic feet per day (mmscfd) in Lagos, as part of its ongoing efforts to offer alternative fuel sources for Nigerians and mitigate the impact of petrol subsidy removal.
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo commissioned the plant at the Isolo Industrial Area, Ilasamaja in Lagos, on Thursday.
This was disclosed in a statement signed by the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye on Thursday.
Ekpo said the occasion, under the theme “From Gas to Prosperity: CNG for All,” represents a critical turning point in the developing of affordable, sustainable, and secure energy sources in the country.
He emphasized that President Bola Tinubu’s bold choice to remove fuel subsidies and encourage the adoption and wider usage of LPG has ushered in a new dawn for Nigerians.
The Minister said, “Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives.”
He pointed out that using compressed natural gas for transport fuels is a modern technology around the world, as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions, adding CNG passenger vehicles emit 5-10% less CO2 than comparable gasoline-powered passenger vehicles.
Meanwhile, the GCEO NNPC Limited, Mallam Mele Kyari, said that to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC has reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service station plants and stations of 5.2 mmscfd capacity each, in selected locations spread across the six geopolitical zones, including the FCT, to ease access to bulk CNG.
According to Kyari, part of NNPC’s efforts to increase domestic gas supply and use as well as the deployment of national gas infrastructure was the opening of a compressed natural gas station at Ilasamaja in Lagos State.
He stressed that the Petroleum Industry Act mandates NNPC to promote domestic gas utilization, thereby enhancing the deployment of critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilize our gas resources for industrialization, power generation, and economic prosperity for all,” Kyari stated.
In his remarks, the Lagos State Governor, Babajide Sanwo-Olu, said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation, and industrialization, in the State.
He emphasized that the State Government has made provision to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will start operations before the end of the year.
The Ogun State Governor, Dapo Abiodun, represented by the State Commissioner of Environment, Mr. Ola Oresanya, said the State backs capacity building in CNG conversion to ensure sustainability and enhance economic development within the State and beyond.
The CEO of Axxela, Bolaji Osunsanya expressed gratitude to all stakeholders, particularly NNPC, for its consistent vision towards the delivery of the plant, stressing that his company’s many years of preparation have now yielded a golden opportunity to provide cleaner, cheaper energy to Nigerians.
The state-of-the-art CNG plant was constructed via a collaboration between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited
