THE Nigerian National Petroleum Company Limited (NNPCL) has commissioned 12 new Compressed Natural Gas (CNG) stations to provide alternative fuel for Nigerians.
The commissioning is expected to provide an alternative to high petrol costs in the country with high energy prices constituting a major determinant to Nigeria’s rising inflation at 33.95 per cent.
Premium Motor Spirit (PMS) prices locally referred to as fuel are nearing N700 per litre in major retail outlets in the country, however, findings have shown that CNG sells below N300 per standard cubic meter for those whose cars have engine options for gas.
The NNPC’s chief corporate communications officer, Olufemi Soneye who disclosed this in a statement on Thursday, July 7 said, the 12 new CNG stations were commissioned simultaneously in Abuja and Lagos state.
Soneye quoted the group chief executive officer of NNPC Limited, Mele Kyari as saying during the commissioning that in addition to the massive deployment of CNG stations nationwide, the NNPCL and its partners would also build three Liquefied Natural Gas (LNG) stations in Ajaokuta.
“There is no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress, we will cover the gap to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari stated.
The GCEO lauded the efforts of President Bola Ahmed Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper sources of energy to Nigerians.
While assuring that the NNPCL will continue to deliver more strategic gas projects for the benefit of Nigerians in line with the Presidential CNG Initiative of bringing prosperity to all Nigerians, Kyari reaffirmed the determination of the NNPCL to guarantee the nation’s energy security.
Also speaking at the occasion, the managing director, of NNPC Retail Limited, Huub Stokman revealed that in the next year, NNPCL Retail would have launched over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites.
“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stockman added.
In his remarks, the minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo said the commissioning of the stations will not only provide economic benefits by creating jobs and stimulating local economies, but it will also contribute significantly to Nigeria’s national goals of reducing emissions and combating climate change.
On his part, the NNPC board of directors chairman, Pius Akinyelure, said increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.
Following the removal of fuel subsidies and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives, NNPC Limited has taken the lead in deploying 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 the construction of thirty-five (35) CNG stations across the various geographical zones of Nigeria.
The ICIR reported earlier that the Federal Ministry of Petroleum Resources met with officials of a Chinese company, Wen Advisor, to firm up an agreement to build compressed natural gas-powered CNG stations in Nigeria.
The pact will see the firm deploy CNG-enabled vehicles across the country.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.