NNPC acquires equipment for new 40 CNG stations
The Nigerian National Petroleum Company Limited has acquired equipment and other necessary items to set up an additional 40 Compressed Natural Gas stations nationwide.
The Federal Government is also planning to have about 100 CNG stations in the next six months.
The Programme Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, Oluwagbemi Michael, disclosed this to The PUNCH on the sidelines of an event in Ogun State.
Oluwagbemi said the NNPC has set up 12 CNG centres in the last 12 months, with six in Abuja and six in Lagos.
The PCNGI director’s comments came amid complaints among Nigerians that there were a few CNG stations, which has affected the acceptance of CNG as an alternative fuel to petrol.
He stated that the government already has an active infrastructure development programme, saying he was working with the Midstream, Downstream Gas Infrastructure Fund.
“Two weeks ago, about N122bn was released to six private organisations that are investing in the CNG distribution value chain. So, we are already taking steps in this direction to ensure that, all over the country, we will be able to have sufficient CNG distribution infrastructure.
“Of course, infrastructure takes time. There is a need for planning in terms of design. There’s a need for acquisition in terms of procurement, and of course, there will now be installation, permitting, and all of that stuff. But it’s ongoing.
“NNPC itself, in the last six months, has installed 12 new stations – six in Abuja and six ongoing right now in Lagos. We know that they have already acquired an additional 40 equipment for 40 different sites across Nigeria,” he explained.
Oluwagbemi added further that other private companies are investing in CNG.
“Bovas is doing eight. NIPCO is doing an additional 12 to the 10 they are already doing. We also know certainly that companies like Matrix, MRS, all are investing in the sector right now. But of course, investment takes time.
“When we started this programme this time last year, we had about 13 to 20 refuelling stations nationwide. Today, we have 50. I believe in the next six months that 50 should double. So it’s a consistent engagement, continuous engagement, and ensuring that investors see the opportunity,” he mentioned.
He noted that by distributing one million CNG conversion kits to commercial drivers, the Federal Government is creating up to 1.5 million additional CNG demands across the nation and providing credit for private individuals to convert the vehicles, saying this would attract investors.
“That means that when investors see the opportunity, they will invest their money in it. So, it’s something that is going on – investment promotion, infrastructural development, investing the government money directly promoting the adoption of CNG. All of this is what’s going to drive the kind of infrastructure development that enables distribution of CNG nationwide,” he explained.
Asked whether existing filling stations could be upgraded to CNG refilling stations, he retorted in the affirmative.
“Absolutely, we already see some add-ons. The NNPC is working on 40 add-ons which should be up and running sometime next year. So, yes, add-ons are possible. We are working with the Nigerian Midstream and Downstream Regulatory Authority to ensure that the permitting system for add-ons is fast-tracked again.
“There are engineering issues that you have a reality of; you must do your planning, you must do your design, you must do your procurement, you must do your construction, And these are being known by the private sector. The government is not the owner of the stations. This has to be done.
“The private sector must see the opportunity and then they must invest. And that’s what they are doing. And what we are doing is to create the opportunity by ensuring we do more conversions, by ensuring we are investing and enabling more, not just conversion stations, but also more cars to be converted,” he added.
When told that many car owners may want the government to convert their petrol-powered private cars to CNG because of the cost, he said there is a credit scheme set up to allow people to convert their vehicles and have the cost paid within a period of time.
“If you are working for an organised private sector, you are working for a TV station, a radio station, or for any company, you can go to the website and register to have your car vehicle converted, and it will give you credit. And that allows you to pay gradually.
“If you are spending N50,000 a week on petrol, if it drops suddenly because of CNG, to N5,000 or N10,000, which is possible under the current circumstances, that N40,000 saving, if you put N20,000 towards conversion financing, then that’s sustainable, and you pay over a year or two years,” he submitted.
The PUNCH recalls that the NMDPRA Chief Executive, Farouk Ahmed, recently expressed concerns that just 50 CNG stations were serving 200 million Nigerians.
But the PCNGI boss assured Nigerians the product would get to all the nooks and crannies of Nigeria. He emphasised that CNG is safer and cheaper.
