CNG: FG targets $4.4bn petrol import savings
As the Federal Government continues the push for increased gas supply to the domestic market, the Presidential Initiative on Compressed Natural Gas, PCNGi, has said it aims to convert about one million vehicles to CNG which would save about $4.4 billion annually in petrol importation.
The PCNGi also added that about $890 million investment would be required to develop infrastructure for the alternative fuel.
Making a presentation at a Co-Creation Session on Nigeria Gas Vehicle Monitoring System, NGVMS, in Abuja on yesterday, the Coordinator, Regulations, Compliance and Facilitation, PCNGi, Engr. Zayyan Tambari explained the government expects CNG to replace 20 percent of the current 50 million litres of petrol consumed in the country daily.
Speaking earlier, the Minister of State Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said the government was determined to ensure that Nigeria reaps the full benefits of its gas resources.
Mr. Ekpo who was represented at the event by Engr. Abel Nsa, pointed out that to ensure a safe usage of CNG as fuel for vehicles, specific materials and tools would be needed across the value chain.
“We are at the point where we need to begin to talk about the safety issues in the use of CNG. We have got to educate ourselves and we have got to use specific tools and materials hitherto that we have not been using.
“If you will recall what happened in 2001-2009 with the emergence of the cell phone during President Obasanjo regime, from an economic perspective, a lot is going to happen. It is going to give us a lot of tools on how to utilize CNG”, he added.
On his part, the Executive Director, Distribution System, Storage and Retailing Infrastructure, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr. Ogbugo Ukoha said the agency in its quest to promote the use of gas has gazzetted two regulations that addressed technical framework and specifications for the development of gas retailing infrastructures and fuel quality standard.
Ukoha explained NMDPRA is pushing petrol station owners to set up CNG points in their facilities, adding that no new licence would be granted without a point to dispense CNG.
“The Authority is also engaging the stakeholders that would result in mandating fuel trucks and fleet owners and also facilities to convert to the use of CNG given the high cost of diesel”.
