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Tag: CNG

  • SON, Ogun state partner to implement CNG usage

    SON, Ogun state partner to implement CNG usage

    The director general of Standard Organization of Nigeria (SON), Ifeanyi Okeke, is championing the use of Compressed Natural Gas (CNG) by partnering with the Ogun state government after the accident that destroyed lives and properties in the gateway state.

    In a statement signed by the head of media, Victor Amadi, the DG and the governor of Ogun state, Prince Dapo Abiodun are partnering to ensure CNG begins full operation in the state as soon as possible.

    This came on the heels of a recent accident in Abeokuta involving a CNG truck.

    Okeke commiserated with the governor and people of the state on the unfortunate incident that recorded one fatality and many cars and properties destroyed.

    The whole idea behind the meeting is to align state-level regulations with federal standards, enhance safety protocols, and streamline processes for the adoption of CNG as an alternative fuel source.

    The DG said: “SON has elaborated and adopted 80 CNG-related standards that would help ensure that operators adhere to the highest safety protocols, minimizing risks associated with handling and usage. SON is committed to upholding stringent quality standards in line with global best practices”.

    Speaking, Governor Abiodun expressed his administration’s unwavering support for initiatives aimed at diversifying the energy mix and reducing dependency on traditional fuels.

    He underscored the importance of ensuring the safety and reliability of CNG infrastructure to mitigate potential risks and promote widespread adoption across the state.

    The discussions also touched upon the broader national agenda, regarding President Bola Tinubu’s visionary “Renewed Hope” agenda, which prioritizes the implementation of strategic projects such as the CNG initiative.

    Read Also: CNG vs petrol

    The aim is to alleviate the economic burden associated with the removal of fuel subsidies while simultaneously advancing Nigeria’s transition towards cleaner and more sustainable energy solutions.

    Both parties reaffirmed their commitment to collaborative efforts aimed at driving the successful implementation of CNG standards and ensuring the safety and efficiency of CNG operations across Ogun state.

    The partnership between SON and the Ogun state government is poised to serve as a model for other states in Nigeria, fostering a conducive environment for innovation, investment, and socio-economic progress.

  • CNG vs petrol

    CNG vs petrol

    • Competing autos, one powered by petrol, the other by CNG, could turn out the ultimate palliative

    By 2027, the Bola Tinubu administration would put “one million natural gas-propelled vehicles” on Nigerian roads, a presidential spokesperson just said. By May 29 — the government’s first anniversary — however, 200 units of compressed natural gas (CNG) buses would have hit the road, aside from 2, 500 tricycles.

    This entry fleet is barely half of 5, 500 CNG buses and tricycles projected to hit the transport market by December 31: 400 CNG buses in all, with the remainder made up of tricycles, and some of the stock even powered by electric batteries — designed for areas with limited access to gas: six out of Nigeria’s 36 states.

    “From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles,” Bayo Onanuga, the president’s Special Adviser on Information and Strategy, announced on April 21.

    This is welcome news, even if it is still some four weeks to delivery time; and the healthy attitude would be rather wait-and-see, until the actual delivery time. 

    It is nonetheless very exciting because by that time, two major refineries — Dangote and NNPC Ltd’s Port Harcourt plant — should have been pushing out the premium motor spirit (PMS), popularly known as petrol. So, perhaps for the very first time in Nigeria’s energy history, CNG and electric autos would compete with diesel and petrol in the transport and general auto market.

    Read Also: PCNGI gets price concession from NMPDRA

    That might be the ultimate palliative, since the far lower cost of CNG could help to push down transport cost — a core input to every business — thus driving down the current tear-away cost-push inflation. That at least should be good news for the many households struggling to stay afloat in these harsh economic times; and even some nano ventures, not discounting the small and medium-scale enterprises (SMSEs).

    The sustainability of CNG is even all the more exciting: Nigerian National Petroleum Corporation’s (NNPCL) data says Nigeria boasts 202 trillion cubic feet (tcf) in gas reserves, with recoverable gas from that trove put at 139.4 tcf. That dwarfs the country’s proven reserves in crude oil of 37.1 billion barrels. Therein again lies the strategic investment in CNG. If well managed, it is a good omen for the economy.

    Yet, it’s early days. The scope of CNG’s entry into the auto market is nothing but the proverbial drop in the ocean. It may be many years yet before CNG can become active competition for petrol.

    But if really the morning shows the day, the government and its partners must get this investment right. It must not be another crude oil story, which got so mismanaged it threw away its comparative advantage. The irony: it was that mismanagement, with barely no local refineries, that prompted CNG as a viable alternative, since subsidy on petroleum products had to go.

    Yet, that crash points to a CNG-aided economy of the future, if the right steps are taken now. For a start, it is good that the government and private sector partners have already invested over US$ 50 million on refuelling stations and conversion centres. But more of those investments are needed, if CNG must penetrate the market.

    Still, they all should start as entry point into a vastly expanded auto industry, leading local auto researchers and investors to exploit CNG for Nigerian indigenous auto brands that can compete with foreign and imported ones. 

    That way, CNG would not only boast short-term gains, it could also become a veritable strategy to provide future jobs for millions of Nigerian youths, in new CNG car lines, without prejudice to foreign assembly plants, which may take the earliest advantage to set up local shops here.

    In all of these, however, constant power is critical. So, while CNG-powered vehicles could offer short-term public transport solution aside from being the slayer of inflation, it offers an additional incentive to sort out the power problem once and for all.

    On electric autos — a sub-set of the new CNG intervention — the president just told the Dutch Prime Minister that Nigerian lithium — the crucial raw material for batteries that power electric cars — can light up the entire European Union (EU). The real deal, however, should be using Nigeria lithium to power new lines of Made-in Nigeria electric cars. 

    That’s doable with the right set of investments, using the CNG era as fresh start.

  • CNG: FG targets 25,000 jobs,$2.5b investment in three years

    CNG: FG targets 25,000 jobs,$2.5b investment in three years

    By: Joseph Okwuofu, Ibadan.

    As the Federal Government rolls out the Presidential Compressed Natural Gas (CNG) Initiatives across the country,  the Programme Director and Chief Executive of the initiative, Engr Michael Oluwagbemi said the government under the administration of President Ahmed Bola Tinubu is targeting over 25,000 job creation and $2.5billion worth of investment in the nation’s economy by 2027.

    The initiative which is part of palliatives on the removal of fuel subsidy , according to Engr Oluwagbemi will attract enormous investment and job creation that will impact positively on the lives of Nigerians.

    The Programme Director and Chief Executive, Presidential CNG Initiatives spoke at the stakeholders meeting on programme held at the BOVAS Auto-Gas filling stations, Ibadan at the weekend.

    In attendance were members of the academia, students, traditional rulers, officials of the Standard Organization of Nigeria (SON) , and members of the organised private sector amongst others.

    Speaking with newsmen after the meeting, Engr Oluwagbemi noted that CNG,  a compressed natural Gas , containing methane stored under high pressure, is a greener fuel than petrol and diesel.

    He said conversion of petrol to compressed natural gas emits a lower amount of carbon, protecting the environment and has a low operational cost.

    Engr Oluwagbemi further called on Nigerians to embrace the new initiatives by the federal government as part of palliatives to cushion the effects of removal of fuel subsidy in the country.

    “Recall that on October 1 , 2023 when the President gave his speech, he announced that the Presidential CNG Initiatives is going to be rolled out as part of palliatives on the removal of fuel subsidy and one of our major concern is to make sure that the transition for the transportation sector is cheaper , safe and more reliable source of energy was under pinned by affordability as well as accessibility .

    Read Also: 1m vehicles to run on CNG by 2027, says agency boss

    “In the coming weeks , we are going to be announcing the conversion incentives program which will enable Nigerians currently using PMS and Diesel fuel vehicles to be able to convert their vehicles at designated places across the country at a discounted price based on certain pre- qualification under the palliative program of the federal government,” he said.

    Speaking on the value chain of the initiative, the Program Director and Chief Executive, Presidential CNG Initiatives revealed that the Federal Ministry of Finance is acquiring a number of  tricycles and buses that will be assembled and manufactured in Nigeria , with more than five automobile firms being activated

    He said ” The value chain of the program starts with everyone of us , right from the point of converting your vehicle , you have created demand for natural gas . Your conversion of vehicle is done by technicians , your car will be refueled by autogas workshops across the country so you’re creating jobs for civil engineers , technicians, you’re creating jobs for the upstream in terms of upstream activities associated with oil and gas .

  • 1m vehicles to run on CNG by 2027, says agency boss

    1m vehicles to run on CNG by 2027, says agency boss

    • PCNGI partners Army on gas vehicles

    The Project Director for Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, has said President Bola Tinubu had set 2027 for at least one million vehicles to run on Compressed Natural Gas (CNG).

    The target is in collaboration with the Nigerian Army, he said.

    Oluwagbemi said this while addressing reporters at the kickoff of the Nigeria Fleet Auto Switch at the Bonny Cantonment on Victoria Island in Lagos State.

    Late last year, the PCNGI launched a pilot conversion centre for gas-powered vehicles in Lagos State as part of the Federal Government’s effort to mitigate the effects of subsidy removal.

    Oluwagbemi said the Tinubu administration had outlined a template for transitioning the transportation sector from Premium Motor Spirit (PMS), or petrol, and diesel to CNG.

    The project director said the framework was comprehensive and necessary for Nigeria’s full transition.

    He added: “The President has set the goal for us that in four years’ time, by 2027, a million vehicles in Nigeria should be running on CNG, and the Federal Government is making provisions to ensure this is possible.

    “The private sector will have to do its part. There should be investment in infrastructure, like refueling stations — we need 3,000 of them; conversion centres – we need about a thousand of them – to make this happen.

    “We even need mini-LNG plants in every state capital of the federation and the Federal Capital Territory (FCT). That requires a substantial level of investment.

    Read Also: Fed Govt to save N300b from redesigned Second Niger Bridge Bypass

    “Last year, a provision of N100 billion was made for under the palliatives for this programme to jumpstart. This is beginning to be utilised as we speak. It’s part of what is being utilised here today in collaboration with the Nigerian Army. This is, of course, the first institution of the Federal Government to move forward in this direction of fully transitioning their fleet.

    “This year, some provisions were made under the Appropriation Act of 2024 for transitions to CNG and PVs for about N130 billion. So, those investments are beginning to be made, but this is just a token of about $2.5 billion that we expect, that is required to implement this programme for the next four years.

    “We believe that it’s not just the Federal Government that will make that investment; it is also the private sector. Since December, when we had our investment summit, about $45 million have already been invested in the sector.”

  • Presidential CNG initiative attracts $45m private investment

    Presidential CNG initiative attracts $45m private investment

    • 16 army vehicles for CNG conversion

    Project Director/CEO, Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi (P-CNGi), yesterday said the initiative has received a boost with investors staking about $45million in the programme.

    He said the initiative has attracted investors in the oil and gas sector who are ready to invest in the establishment of the conversion and refueling centres across the country.

    He spoke at the Nigerian Army Auto Switch kick-off at the Nigeria Institute of Transport Technology (NIIT) in Abuja.

    Sixteen vehicles belonging to the Nigerian Army are to be converted from use of premium motor spirit (PMS) to CNG.

    Oluwagbemi said the CNG conversion centres have increased from seven to 21 centers across the country, adding that the centres would increase to 45 by May 29, 2024.

    He said the target of the P-CNGi is to have about one million conversion centres before 2027 and over 3,000 refuelling centres driven by 25,000 technicians.

    He said: “We also have increased the number of investments in refueling centres. We will have about 100 of them before the end of the year. NIPCO is investing 32, MRS 10, BoVAS 10, the core partners of the Presidential CNG is investing over 15 centres and these have attracted $45million.”

    He said to encourage investment in the sector, the P-CNGi has attracted tax and duty waivers as well as secured 80 regulatory standards by the Standards Organisation of Nigeria (SON).

    The P-CNGi noted that Nigeria could not continue to depend on other countries for its energy security, assuring that Nigerians would soon start seeing the good in the fuel subsidy removal.

    Minister of Transportation, Sen Said Alkali, while declaring open the training and kick-off of technicians of the Nigerian Army on the CNG auto fleet, stressed that CNG was environmentally -friendly, cost effective and an alternative fuel for mobility.

    Read Also: We will ban issuance of mining licenses to investors without requisite plans – Alake

    He said the training was facilitated by NITT with support from the Federal Ministry of Transportation on conversion technology for two weeks.

    The minister said the initiative was aimed at driving down and managing the cost of transportation for Nigerians by utilising the cheaper gas alternative that was abundant and underutilised.

    He said the initiative would facilitate job creation, transfer of technology, support the development of auto manufacturing and the development of critical gas distribution, processing and production infrastructure.

    Director-General, NITT, Bayero Farah said 11 Army personnel would undergo a two – week training at the organisation’s facility, while 16 vehicles belonging to the Nigerian Army would be converted from use of PMS to CNG.

  • Firms to introduce CNG on waterways

    Firms to introduce CNG on waterways

    R IL Hydro Krafts  and its American partner,  BlueGas Marine, are to inject Compressed Natural Gas (CNG) on waterways.

    They presented this to boat operators, Nigeria Inland Waterways Authority (NIWA), Lagos State Waterways Agency (LASWA), and the media in Lagos.

    Chief Executive of Ril, Olayiwola Solesi, said the idea is to give  operators alternative to promote cleaner environment on waterways.

    Read Also: ‘CNG will create jobs, wealth for Nigerians’

    Solesi said urged ferry operators to back the scheme.

     He said the initiative is supported by Federal Government, which is committed to CNG buses on roads.

    Ministry of Marine and Blue Economy, he said, is looking at how operators would benefit from the Presidential Compressed Natural Gas Initiative (PCNGI) for deployment of hybrid fuel systems for marine propulsion engines.

  • ‘CNG will create jobs, wealth for Nigerians’

    ‘CNG will create jobs, wealth for Nigerians’

    The Federal Government has reiterated that diversifying the country’s energy mix to Compressed Natural Gas (CNG) will create more jobs and wealth for Nigerians.

    The Director-General, National Automotive Design and Development Council (NADDC), Mr Joseph Osanipin, gave the assurance at the Critique/Validation Workshop for the recently developed National Occupational Standard (NOS) in Keffi yesterday.

    The NOS is for the conversion, calibration and maintenance of CNG/autogas-powered vehicles and electric vehicles service/maintenance in Nigeria.

    “The development of the NOS you are about to discuss is a testament to the efforts the council is making to ensure skills development and upgrade in the automotive sector.

    “NADDC is promoting the development of CNG/Auto Gas-Powered and Electric vehicles in Nigeria and creating the enabling environment for them to thrive.

    “This will reduce the dependency on petrol and diesel and mitigate environmental concerns (greenhouse gas emissions).

    It is also a means of diversification of the Nigerian economy and will lead to more job opportunities and wealth creation for Nigerians.

    According to the NADDC boss, the essence of the workshop is to ensure that inputs of all relevant stakeholders are captured in the making of this national document.

    Read Also: Oronsaye report: Labour cautions Fed Govt against job loss

    He said: “It is expected that the document that will come out of these efforts will be of international standards and help to drive the auto sector to its well-deserved position globally.

    “When fully operational, the framework will place out-of-school children, working adults, graduates and apprentices at both formal and non-formal settings with skill acquisition and competency.

    “I therefore urge all of you to give this national assignment the best it deserves.”

    According to Osanipin, the NOS has been developed through the collaborative efforts of all relevant stakeholders in Automotive sector.

  • Elizade, gas firm float CNG stations

    Elizade, gas firm float CNG stations

    Oil and gas distribution firm, Mezovest, and automobile dealer, Elizade, have partnered to float Compressed Natural Gas (CNG) daughter stations as eco-friendly, cost-effective, and sustainable alternative to petrol.

    Mezovest’s Managing Director, Tosin Thompson, noted the deal followed hike in price of petrol and diesel.

    His words: “Given the hike in price of petrol and diesel, there has been a surge in demand for cleaner, more affordable options. This has created a favourable market for us to create value for Nigerians seeking affordable energy alternatives.”

    He said government’s policy seeking to provide alternative energy is key factor accelerating the partnership.

    “Mezovest will oversee logistics, site selection, technology integration, and execution, while Elizade will provide automotive support, offer CNG-compatible vehicles, and spearhead marketing efforts through its  network,” he added.

    Elizade’s Chief Executive Officer, Demola Ade-Ojo, said the partnership was timely and economically imperative.

    Read Also: Why we cannot sell cement below N7,000, by Dangote, Bua, Lafargea

    “Our collaboration with Mezovest will not only deliver value to customers and partners in cost savings but will also contribute to a healthier environment”, he said.

    He noted that the cost savings would translate to increased disposable income to impact Nigeria’s economy positively.

    “As Nigeria grapples with rising inflation driven by high energy costs, Mezovest and Elizade are keen on transforming a major economic hiccup into a market opportunity by providing affordable alternative energy to Nigerians.

    ‘‘This leading-edge partnership will represent a significant step towards a more sustainable and economically viable energy future in Nigeria,” Ade-Ojo noted.

  • CNG calls for urgent action to address rising costs of commodities

    CNG calls for urgent action to address rising costs of commodities

    The Coalition of Northern Groups (CNG) on Tuesday, February 6, expressed deep concern over the indiscriminate rise in prices of essential commodities in Nigeria.

    The group said the soaring costs of food items and other necessities have left Nigerians in a state of despair, struggling to provide for their families and faced with unaffordable necessities.

    The national coordinator of the group, Jamilu Aliyu Charanchi, made the call in the statement issued in Abuja.

    Aliyu said: “Despite the existence of the Consumer Protection Board, which should safeguard the interests of the people, the inaction on their part has only worsened the situation, fueling frustration and anger among citizens.

    “This inaction has further aggravated the suffering faced by the majority of Nigerians, while a privileged few continue to live in opulence.

    “It is disheartening to witness such a stark contrast between the lives of the elite and the suffering of the masses, and it is high time that resources are utilized for the benefit of all citizens.

    Read Also: CNG Project: Why vested interests may jeopardise Tinubu’s good intentions

    “The exorbitant hike in food prices in Nigeria is not a result of natural market forces, but rather the self-serving interests of unscrupulous elites. These elites have manipulated the forex market, causing a scarcity of foreign exchange and subsequently driving up the cost of importing essential food items.

    “The current forex racketeering and hikes in commodity prices can be attributed to officials from the previous administration who are seeking to conceal their ill-gotten wealth. These individuals are converting their looted funds into foreign currencies, particularly dollars, as it is easier to hide large sums in foreign currency.

    He added: “Additionally, these officials are responsible for hoarding foreign currencies, creating an artificial scarcity that fuels the demand and subsequently increases the prices of essential commodities.

    “The CNG firmly believes that the individuals responsible for the current hardships faced by Nigerians are those who have historically received substantial unregulated allocations of foreign currencies from the government. However, with the government now closing the doors on such practices, these individuals have resorted to manipulating commodity prices to maintain their profits.

    “Additionally, influential business holders who control production and importation further contribute to the prevailing difficulties. These individuals, often operating within monopolistic structures, have a significant influence on the availability and pricing of essential commodities. By controlling the supply chain, they can dictate prices and exploit the market to their advantage.”

    In addition to these factors, the CNG finds it unacceptable for the government to complicate the situation further with multiple taxation.

    CNG said the Nigerian Customs Service, among other agencies, imposes excessive taxes and levies on businesses, hindering their growth and increasing the cost of goods.

    This burden, it said is ultimately passed on to the consumers, exacerbating the already high prices.

    The group said the recent hikes in tariffs for utilities, such as electricity, only add to the financial strain faced by Nigerians.

    In light of the prevailing circumstances, the Coalition of Northern Groups calls for swift and decisive action from the federal and state governments.

    He said: “It is imperative that these manipulative practices are exposed and those responsible are held accountable. We demand that the government identifies, exposes, and prosecutes those individuals responsible for the current hardships imposed on its citizens.

    “Furthermore, we urge the government to recognize the adverse effects of excessive taxation and tariff hikes and take immediate steps to review and reverse these policies. This action will alleviate the financial burden faced by citizens and create an environment conducive to economic recovery.

    “We demand that a national executive council meeting be convened, bringing together representatives from the Central Bank of Nigeria, banking and financial institutions, Bureau De Change operators, and other stakeholders. Urgent action is needed to address the free float of the naira and other damaging policies that further impoverish the majority while enriching a few.

    “The time for action is now. Failure to take urgent measures may result in national chaos as the frustration and anger of the people reach a breaking point, potentially leading to a complete breakdown of law and order.”

  • NMDPRA, firm sign MoU for CNG infrastructure development

    NMDPRA, firm sign MoU for CNG infrastructure development

    he Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday signed a Memorandum of Understanding with Ibile Oil and Gas Corporation for the development of infrastructure for the Compressed Natural Gas (CNG).

    Addressing reporters at the agreement-signing ceremony in Abuja, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo, noted that the pact will pave the way for the firm to facilitate the penetration of CNG to drive the transport sector.

    According to him, owing to the removal of the Premium Motor Spirit (PMS) petrol subsidy, the need for an MoU for an alternative fuel has become expedient.

    His words: “It is an important moment in the history of this ministry and today, I have witnessed the signing of MoU between the NMDPRA with Ibile Oil and Gas Company.

    “This will help them to develop the infrastructure for CNG.

    “And, of course, with the withdrawal of subsidy the alternative means now is the natural gas.

    “So, what they are coming in to do and the essence of this agreement or MoU is to fast-track the penetration of natural gas in the form of CNG to drive the transport sector.”

    Asked when the agreement will become effective, he said it took immediate effect.

    He however put a caveat to it that the parties to the pact, will perfect everything, expressing optimism that it will they will not delay the project.

    Ekpo said, “We have started everything today. It is left for the party concerned to perfect everything and I don’t think it will take a longer time.”

    He said it was the importance of the agreement that compelled him to return from Port Harcourt, where he went for the event of the completion of the Port Harcourt Refinery yesterday.

    He vowed to ensure that he drives the parties to keep to the schedule in the agreement because Nigerians are eager to see the alternative fuel to petrol.

    The minister said, “You can see the importance of this meeting while we are having it today, I was in Port Harcourt, I had to drive in and the MD decided to stay behind.

    “ All the person’s, the Authority Chiefs stayed behind to make sure that this thing happened today.

    So I want to make sure they will key into the speed we are doing it today

    “. The importance of this event is to make sure they finish it in schedule. Nigerians are waiting for this.”

    Speaking, the Ibile Oil & Gas Corporation, Managing Director, Ms Doyin Akinyanju, noted that that the firm is fully prepared to hit the ground running with the signing of the agreement.

    She revealed that the Lagos State Governor is very keen about the project will commence with between now and the first quarter of 2024.

    She said it will take off with government owned fleets before extending the services to commuters.

    “It is for the government fleets as well as commuter buses so that the commuter buses people can actually be driving and moving around at lower cost,” she said.

    She noted that “We are rolling out mobile stations so that very quickly people can drive into stations and fill up from there.”

    According to her, the project will start with the targeted at fast tracking gas for transport and power in Lagos State.

    She revealed that the company is partnering with the international technical partners who are the manufacturers of the kits.

    Read Also: Nigerians battle acute hunger amidst insecurity

    She further revealed that the firm has also partnered with stations in terms of consersion of the vehicles.  

    The Chief Executive Officer said, “Honestly, to say we are prepared is an understatement.

    We started with the Governor of Lagos State is committed to fastrack gas for transport and gas for power.

    “The government is committed to transition to gas as quickly as possible. And he has charged us to make sure we work towards the end to end development of this project.

    “We have partnered with internationals who are leaders of the manufacturers of the kits. We have also centres we have partnered with to the conversion. “

    “We are going to start with state owned fleets and doing the conversion.”

    Asked to reveal the takeoff time, she said,

    “We are looking at the period of between now and the first half next year to see major impact. And this is all aligned with the renewed hope to transition to gas.”