The Nigerian National Petroleum Company Limited (NNPCL) has disclosed its plans to roll out six more Compressed Natural Gas (CNG) plants.
These proposed CNG stations, with 5.2mmscfd capacity each, will be located in selected locations across the country to ease access to bulk CNG.
This was disclosed on Thursday by the Group Chief Executive Officer of NNPC, Mele Kyari, at the commissioning of the company’s 5.2MMscf CNG plant in Ilasamaja, Lagos State.
He said that the national oil firm has taken a Final Investment Decision (FID) with Axxela Limited to deliver the projects.
Based on figure from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as of January, the nation’s natural gas reserves stood at 209.26 Trillion Cubic Feet (TCF).
Speaking on the country’s enormous gas reserves, Kyari said: “We’re a gas country with associated oil. But we haven’t taken advantage of this gas for a very long period of time.”
He noted that NNPC’s investments in gas are not just market-driven, but also as mandated by the Petroleum Industry Act (PIA) to drive domestic utilisation of gas.
The NNPC boss asserted that in the last year, there have been vigorous activities by the government to ensure that gas becomes an engine room for economic growth and development in the country.
“We’re building massive infrastructure in-country to ensure that gas reaches every corner of our country, but more than anything bring the volume that we require for the economic growth that this country truly deserves,” he said.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilise our gas resources for industrialisation, power generation and economic prosperity for all.”
He highlighted the significant role the Obiafu-Obrinkon-Oben (OB3), Ajaokuta-Kaduna-Kano (AKK) and Escravos Lagos Pipeline Systems (ELPS) gas pipelines will play in deepening domestic utilisation of gas in-country.
“I’ll like to inform you that many of these backbone infrastructure projects – the OB3, the AKK and also the expansion of ELPS – will automatically connect our gas sources, encourage gas producers to see the opportunity to grow gas into our pipeline networks,” Kyari said.
He expressed optimism that CNG will soon become the fuel of choice for many motorists in Nigeria.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who commissioned the plant, said the occasion, under the theme “From Gas to Prosperity: CNG for All”, represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.
The minister described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.
“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” he stated.
Highlighting the gains of CNG, Ekpo said the use of CNG as a transport fuel is a mature technology used globally as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions.
Also speaking at the event, Lagos State Governor, Babajide Sanwo-Olu said the establishment of the CNG plant aligns with the vision of his government.
He disclosed that the state plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will commence operations before the end of the year.
The Ogun State Governor, Dapo Abiodun, reiterated the state’s commitment to deepening domestic utilisation.
Represented by the State Commissioner of Environment, Ola Oresanya, the governor said the state is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the state and beyond.
Earlier in his goodwill message, the Chief Executive of the Presidential CNG Initiative, Michael Oluwagbemi, described the plant commissioning as a testament to Tinubu’s commitment to providing sustainable energy solutions for Nigerians.
Giving his vote of thanks, the CEO of Axxela, Bolaji Osunsanya appreciated all the stakeholders, particularly the NNPC for its consistent vision towards the delivery of the plant, adding that his company’s many years of preparation have now met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.
The Ilasamaja CNG plant was built by NNPC in partnership with Transit Gas Nigeria Limited (TGNL), a subsidiary of Axxela.
The CNG station can serve vehicles and also supply gas to industries and other companies. The facility utilises state-of-the-art 95MScf/hour compressors and has dispensing points for filling of gas-powered vehicles, utilising CNG as a primary or alternate fuel.
It would deliver CNG at 250 bar into specialised tube trailers for onward delivery to customers beyond the pipeline gas areas, approximately within a 250km radius of the Facility. With an average tank capacity of 40SCM for Autogas cars and 250SCM for Buses/Trucks, the 150,000SCM capacity plant can fill about 3,700 cars or 600 trucks/buses daily.
Nigeria has adopted gas as its transition fuel and is committed to achieving carbon neutrality by 2060. NNPC Limited is at the vanguard of powering Nigeria’s greener future
The partnership with TGNL is not the first aimed at deepening domestic utilisation of gas. In August last year, the national oil firm entered into a strategic partnership with NIPCO Gas Limited to deploy CNG stations across the country. Under the partnership, 35 CNG stations will be set up in Lagos and other parts of the country.