NNPC Acquires Equipment for Expansion of 40 CNG Stations Nationwide

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Olori Uwem

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Mar 18, 2024
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NNPC Acquires Equipment for Expansion of 40 CNG Stations Nationwide

Details:

The Nigerian National Petroleum Company Limited (NNPC) is set to establish 40 new Compressed Natural Gas (CNG) stations across Nigeria. This is part of a larger plan by the Federal Government to roll out 100 CNG stations within the next six months to promote CNG as a sustainable and cost-effective alternative to petrol.

Oluwagbemi Michael, Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), made the announcement at an event in Ogun State. He noted that NNPC has already set up 12 CNG centers—six in Abuja and six in Lagos—within the last year. Furthermore, 40 additional equipment pieces have been acquired for nationwide distribution.

To support the growing demand for CNG, the Federal Government released N122 billion to six private organizations involved in the CNG distribution value chain. This is aimed at expanding infrastructure and ensuring CNG accessibility nationwide. In addition to NNPC, private companies such as Bovas, NIPCO, Matrix, and MRS are investing in the sector.

Oluwagbemi highlighted the government’s commitment to promoting CNG by distributing one million conversion kits to commercial drivers, which is expected to boost demand for CNG and attract further investments in infrastructure.

While there have been concerns about the limited number of CNG stations, the government’s active infrastructure development program aims to double the existing 50 stations within six months. Additionally, private individuals can now convert petrol-powered cars to CNG through a credit scheme that allows gradual payment over time.

The government is confident that with ongoing investments and support, CNG will become a more accessible and widely used fuel alternative across the country.