NNPCL partnership with NIPCO on CNG to reduce demand for fuel

IN a partnership deal expected to reduce demand for Premium fuel Motor Spirit (PMS), the Nigerian National Petroleum Company Limited (NNPCL) has struck a strategic partnership deal with NIPCO Gas Limited to deploy Compressed Natural Gas (CNG) stations across the country.

The National Oil Company said the partnership is focused on providing cheaper alternative PMS to motorists.

Most Nigerians have been embroiled in the high cost of PMS since the removal of petroleum subsidy, but the NNPCL assured the deal would provide alternative options for Nigerian motorists.

The Chief corporate communications officer of the NNPCL, Garba Deen Muhammad, in a statement said, the collaboration aims to expand the CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars and Keke NAPEP,which will significantly reduce the cost of transportation and engender sustainable national economic growth.

“Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three (3) Mother stations,” the statement said.

According to the NNPCL, once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation.

“The project will be rolled out in phases. The first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024; While the second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by late 2024.

“This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country,” the statement read.

NIPCO Gas Limited is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG.

“NIPCO’s technical competency and field experience will bolster this initiative’s success and amplify its positive impact on the Nation’s economy.”

According to the NNPC, this initiative will leverage Nigeria’s abundant natural gas resources to bring multiple benefits to Nigerians, including access to cheaper fuel, reduced cost of transportation, reduced carbon emissions, and create new business value chains and streams of job opportunities.



    NNPC Limited expects further private sector participation by oil marketing companies to broaden CNG penetration and availability.

    The National oil company said it remains committed to reliably delivering energy while continuously creating value for Nigeria’s prosperous future alongside its partners.

    The ICIR has earlier reported how the Independent Petroleum Marketers Association of Nigeria (IPMAN) have advanced negotiations with banks to support them on CNG as a proven alternative for the rising Costner of PMS.

    IPMAN chairman, Chinedu Okoronkwo, assured that CNG would provide a good alternative to the PMS as its rising cost bites harder.

    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.

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