By Adewale Sanyaolu
Efforts to lower public transport cost occasioned by rise in the price of Premium Motor Spirit, popularly called petrol may soon begin yielding expected result as President Bola Tinubu, has promised to fast track procurement process for new Compressed Natural Gas(CNG) conversion kits.
Tnubu made the declaration in his address to commemorate Nigeria’s 63rd Independence anniversary which held yesterday.
‘‘New CNG conversions kits will start coming in very soon as all hands are on deck to fast track the usually lengthy procurement process. We are also setting up training facilities and workshops across the nation to train and provide new opportunities for transport operators and entrepreneurs.
This is a groundbreaking moment where, as a nation, we embrace more efficient means to power our economy. In making this change, we also make history,’’.
The President added that making the economy more robust by lowering transport costs will be key, explaining that Government has opened a new chapter in public transportation through the deployment of cheaper, safer CNG buses across the nation which will operate at a fraction of current fuel prices, positively affecting transport fares.
The Group Chief Executive Officer(GCEO), Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, had in August announced that it was partnering with NIPCO Gas Limited to develop Compressed Natural Gas (CNG) stations in the country.
According to the NNPCL, the partnership is part of the company’s commitment to reducing its carbon footprint and providing cheaper alternative fuel to motorists in the country.
“As part of the NNPCL commitment to reducing carbon footprint and providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with NIPCO Gas Limited to develop Compressed Natural Gas (CNG) stations,” Mr Kyari said.
He said this initiative was in addition to the phased deployment of 56 CNG stations planned by NNPC Retail across the country.
“This landmark collaboration aims to expand our 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,” he said.
Once fully operational, Kyari said the stations could service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on climate.
He explained that 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 the first quarter of 2025,”
“This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country,” he added.
To deepen and sustain this initiative, Mr Kyari noted that the NNPCL had floated NNPC Prime LNG Limited for domestic LNG production and supply. He added that the NNPC is also collaborating with Miju Auto Gas, a leading CNG kit Equipment Manufacturer (OEM) based in India, to set up training and conversion centres to facilitate in-country conversion of vehicles from petrol to CNG.
Kyari said NIPCO Gas Limited is 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.
“This forward-thinking 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 emission, create new business value chains and streams of job opportunities,” he said.
He noted that NNPCL remains committed to reliably delivering energy while continuously creating value for Nigeria’s prosperous future.
Kyari said Nigeria is endowed with over 200 trillion cubic feet of proven natural gas reserves, from which numerous economic value is driven, such as gas to power, petrochemicals/fertiliser industries and the transport sector using CNG.
He explained that CNG is produced by compressing natural gas to 200-250 bar to enhance its storage in onboard cylinders.
“CNG is a suitable and cheaper alternative fuel for motorists with lower emission impact. With CNG, Nigerian motorists can afford a cheaper and environmentally friendly fuel to supplement PMS consumption and enhance domestic energy security,” he added.
Also speaking, Nagendra Verma, the managing director of NIPCO, said partnering with NNPCL would help deepen gas utilisation in the country.
Verma said NIPCO has 12 years of experience in the distribution of auto CNG while noting that it would continuously work with NNPCL towards gas market expansion.