Tag: CNG

  • Why Ogun’s CNG initiative is a game changer, by Abiodun

    Why Ogun’s CNG initiative is a game changer, by Abiodun

    Ogun State Governor Dapo abiodun spoke with reporters in Abeokuta on the activities of his administration. Excerpts:

    Your Excellency, we saw you riding a CNG bike. Was that for pleasure, or is the CNG initiative here with us?

    Yes, you saw me riding the CNG bike, but let us take some steps back. Sometime last year, we launched our CNG Mass Transit Programme, which was basically the conversion of some of our state-owned buses to become CNG powered. This was because we knew that the president was going to deregulate, and this was the posture of all the presidential candidates before the elections. Hence, the state government, as a responsible entity, had to move in that direction; Thus, we started that programme, knowing full well that as soon as the vision became a reality, it would affect the cost of transportation of people, goods, and services.

    So, what we did last October was to actualize and domesticate the Renewed Hope Initiative to begin to cushion the effects of fuel subsidy removal. That was our Phase 1, and Wednesday was Phase II, which was our E-Mobility Launch, showcasing electric motorbikes, electric tricycles, CNG tricycles, and electric vehicles.

    Yes, you saw me riding a bike; I used to ride one back in the day when I was much younger. More importantly, what we are trying to achieve is to drastically reduce the cost of transportation because when you deregulate, particularly at this period when our people are agitating about food prices, one of the major elements that contribute to inflation is the cost of transportation.

    I recall today, Thursday, someone called to say he bought yam in Lagos at a particular price, which was quite higher than what it was at Ikire. You find that the difference between the price in Lagos and that of Ikire was because of the cost of transportation. This is what we set out to achieve, and I can see that we have been very successful in that objective. When we launched our CNG buses, it crashed the cost of transportation for our people within Abeokuta and between Ogun State and Lagos and actually forced down fares from the Mowe-Ibafo corridor to Lagos.

    Now, let me give you a practical example so you can properly understand the impact. On Wednesday, we launched the e-bike, and those e-bikes have no engines. All they have is a battery that makes them practically noiseless. The emissions are zero, which means that we are not polluting the environment in terms of environmental impact.

    We are now going to reduce the cost of transportation by around 45 per cent. All that these e-bikes need is to have their batteries charged. Once charged, they will power the bikes for about 75 kilometers on a single charge. We have charging stations located around the state where riders can charge within two to three minutes, thereby creating another small economy for those at the sub-stations. In one breath, we are reducing the cost of transportation; in another breath, we are reducing pollution and building a small economy for those who would be managing the substations.

    Let me give you another example. We also launched on Wednesday a particular CNG-powered tricycle that previously travelled about 120 kilometres on fuel that would cost about N14,000. The one we launched will travel the same distance on CNG that will cost about N2,000 to power. As I said, all we do in Ogun State is to domesticate the Asiwaju solution, which means that regardless of the level of inflation, this will provide the cushioning effect that will reduce the cost of transportation.

    Why is it that it is only Ogun State doing this? It is supposed to be done by all 36 governors and the FCT to ameliorate the effect of the subsidy removal.

    Well, for us, we occupy a strategic position in the country. We are the closest to the financial capital of Nigeria. I also enjoy an advantage: I have a large number of gas stations in my state. The gas pipeline that goes all the way to Ibese, passes through my state, leading to the proliferation of industries in Ogun State because of access to power. So, for me, I took advantage of that.

    It is not because of any special funding; we have not been given any special funding by the Federal Government. It is just because of the strategic location of my state and proximity to Lagos. I realized that it was important for me to immediately cash in on this initiative and provide an alternative means of transportation that will cushion the effect of the deregulation that was brought to a stop; the monster that consumed N500 billion to N600 billion a month in fuel subsidy as of then.

    Governor Abiodun, as far back as about two months ago, there was a report that the Federal Government was going to give N10 billion to each state for CNG mass transit to reduce transportation costs. Are you saying that the money has not been disbursed?

    You see, the problem with the average Nigerian is that we are very impatient. From the announcement of a policy to its implementation, it takes a period of time. They are working assiduously to ensure that what we are doing in the state is replicated across the country. But let me tell you something: the CNG case is not like the COVID case, where one size fits all. It takes some time to identify the type, make, and model of vehicles, so it is taking that much time to put a system in place. I know they are working on it, such that they log onto their site and indicate the model of vehicle and where you are. At the appropriate time, they will allocate a time for you to bring your vehicle for conversion to CNG. So, as time goes by, it will become commonplace in Nigeria.

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    Rest assured that even though I am not trying to speak for them, I have knowledge of what they are working on. You can imagine what we have done in Ogun State, which is a state of about 5,000,000 people, compared to the whole of Nigeria, where we have a population of over 200 million. I am sure that in a few months, we will begin to appreciate the progress in many states. They are working on this CNG conversion, and the president is particularly keen on ensuring that this scheme is successful.

    Apart from the CNG buses, we understand that some transport organizations and unions are supposed to receive some subsidy also for CNG-enabled vehicles to help them with their transport businesses, and about three million households are supposed to receive about N50,000 each. What are you doing to reduce the pressure on private individuals? Give us a sense of what is going on, especially with the hunger and the protests today?

    What I will say to Nigerians today, boldly, is that President Bola Ahmed Tinubu has only been in office for a year and perhaps three months. It takes more than 15 months to reverse a trend that has permeated for a few years before his assumption of office. He has declared his principles and policies, and as soon as he was inaugurated and assumed office, he began implementing these audacious policies. These are policies that previous administrations were perhaps not bold enough to implement.

    These policies have been applauded by development banks and organizations all over the world. It will take time for their impacts to begin to be felt by the common man. He has promised, and on Wednesday, the Minister (of Finance and Coordinating Minister of the Economy) told all Nigerians that the President is aware of the current realities and is working assiduously to ensure that he lives up to the expectations of our people.

    When he assumed office and declared that there was no going back to deregulation, he immediately began giving wage awards to all public servants. Only recently, he signed the Minimum Wage Act. That is a serious commitment. He has begun implementing the Students’ Loan Scheme. When last in the history of Nigeria did we see the disbursement of students’ loans to students of tertiary institutions? The FG is also implementing schemes for the elderly across the entire country and wards, and these schemes are ongoing. The president is giving out food palliatives through us governors, knowing that the impacts of the policies are being felt. Now, the FG is removing import restrictions on certain food items, and as of this week, rice should begin to be sold to people at N40,000 per bag. He has provided agricultural inputs, fertilizers, maize, corn, sorghum, all within one year! What more do we expect from a man who has a proven track record? He was governor of Lagos State for eight years. Lagos is the size of many African countries put together.

    You will agree that the current issue of inflation is not applicable to Nigeria alone. Yesterday, there was a protest in Ghana, a protest in the UK, and not long ago, in Kenya. Inflation is rising all over the world. As much as I appreciate that elected officials must look out for the well-being and welfare of our people, our President is doing his very best and is committed. I believe that what we must do is allow him time so that we can see the impact of these policies.

    The Naira has stabilized, and with the recent intervention of Mr. President in the Dangote/NNPC issue, which was made to appear like a controversy, that crude must be sold to Dangote Refinery and other refineries in Naira, you will see the reduction of pressure on the Naira and Dollar, and I am sure that you will see instant relief. That will reduce the exchange rate, and over time, you will see the multiplier effect on the economy.

    The truth is that what we are going through now is like the pain of a woman who is trying to give birth. She will go through a lot of pain, but at the end of the day, when she gives birth, everyone is happy. So, I want to plead with Nigerians to give Mr. President and all of us time as well. He is doing everything he can, knowing that his number one role is to put food on our table. They are the ones who brought him into office, and he has said it so many times that, ‘Look, don’t pity me. I asked for this job. I campaigned for it. I invested to be President, and this is the only job I have.’

    There are those who would be asking whether the cost of governance is one of the areas where the people would know that the government is listening to the agitation of the poor. There is this belief that we spend far too much on those who are in power while poverty is high in the country. Is there anything the government of the day will be doing in that respect?

    Well, without a doubt, the Bola Ahmed Tinubu administration is a considerate one. This is the first time, and I am glad that my brother, Mr. Femi Falana, SAN, who spoke with you earlier, alluded to such things, even though I do not agree with everything. He said that this government is a responsive one.

    This is the first time there would be protests or civil disobedience, and the government would go all out to ensure that they engage with diverse groups, explaining to them what the government is doing, what it has done, and what it intends to do. By doing so, they are providing moral suasion, and different groups came out, dissociating themselves from the protests. That clearly indicated that this administration is responsive to the needs of the people. So, I don’t think I need to say anything other than that.

    The voices and cries of our people are being heard from the local governments to the state governments and to the Federal Government, and we are all working together. Last week, we met with Mr. President; we hold the National Economic Council meeting once a month to discuss the economy of the country and review our activities. I can tell you that the Nigeria of our dreams is just on the horizon. So, regarding the cost of governance, we have heard that you, and Mr. President has directed that public servants should buy locally made vehicles, and such vehicles must be powered by CNG. Look, this is the first time we have a president who has his fingers on the button.

  • Fed Govt, NURTW launch CNG initiatives in Lagos

    Fed Govt, NURTW launch CNG initiatives in Lagos

    To promote cleaner and more affordable energy solutions, Federal Government, in collaboration with National Union of Road Transport Workers (NURTW), yesterday launched Compressed Natural Gas (CNG) initiatives in Lagos.

    This launch follows the initial launch in Kaduna last Thursday, which targetted the northern zone.

    Speaking at the event, Alhaji Najeem Usman Yasin, chairman of the Board of Trustees (BoT) of NURTW, lauded President Bola Ahmed Tinubu for initiating the project.

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    He said the project, once fully functional, would reduce transportation costs for citizens.

    The CNG initiatives aim to reduce greenhouse gas emissions, improve air quality and enhance the overall transportation experience for millions of Nigerians. Additionally, it will create new job opportunities, stimulate economic growth and contribute to the country’s sustainable development goals.

  • FG to distribute 30,000 CNG conversion kits to commercial drivers

    FG to distribute 30,000 CNG conversion kits to commercial drivers

    Mr. Michael Oluwagbemi, Chief Executive Officer/Programme Director, the Presidential Compressed Natural Gas (CNG) Initiative, says 30,000 CNG conversion kits have been procured to be distributed to commercial drivers within 90 days.

    According to a report by the News Agency of Nigeria (NAN), Oluwagbemi disclosed this at the Park-to–Park CNG Conversion Mobilisation on Saturday in Lagos.

    He added that the CNG initiative was to ensure that commercial drivers would benefit from the palliative measure for transporters.

    “We have been across over 14 states, we have been to Ilorin, Ekiti, Lokoja, Aba and Port Harcourt; we have been to the South-East even to the North.

    “We are confident we have built a national movement for this conversion.

    “What we now need is action, and that is why we are here today. We are acting on what Mr. President has said –  to roll out and roll out fast.

    “ We are here to put into action our talk in the past six months. This is the time for Nigeria to use the gas.

    “Nigeria should believe in this project, there might be some challenges but we should believe in it.

    Read Also: FG to distribute 30,000 CNG conversion kit to commercial drivers

    “This is our country, so, we need to support this programme, support Mr. President. Don’t be negative, we should be positive in this,” he said.

    Oluwagbemi pointed out that CNG was cheaper, cleaner, safer and more reliable, adding that it had 40 per cent less steel emission and 90 per cent less pollutant in the air.

    “Definitely, there is an advantage to use CNG for the environment. We are already flaring gas. What we are saying is that instead of flaring gas, we use it for the growth of the economy,” he said.

    A former Commissioner for Transportation in Lagos State, Dr. Kayode Opeifa, said that the provision of conversion kits by the Federal Government was in keeping with its promise of easing the effects of fuel price increase, for transporters.

    According to him, 150 beneficiaries will collect vouchers for conversion which they will take to an installation centre.

    He added that they would  refill  gas at N250 per kilogramme.

    “This will, in turn, increase pocket savings, reduce transport fare and prices of commodities,” he said.

    Mr. Najeem Yasin, a former National President, the Nigerian Union of Road Transport Workers (NURTW), said that the initiative would positively affect the lives of transporters in the country.

    “Today, we are here to launch the programme officially. We started in Kaduna, and today, we are here, in Lagos.

    “We appreciate the president of Nigeria for trying to assist transport workers throughout the nation.

    “With the CNG, prices of commercial vehicles should come down, and this will affect all sectors of the economy,” he said.

    He said that NURTW was involved in the project to make sure it would go round.

    “The whole 36 states would get these free conversion kits, and we assure Mr President that the aim would be actuslised,” he said.

    He urged all transport associations to bring their lists for conversion.

    The News Agency of Nigeria (NAN) reports that 14 conversion centres were represented for the signing of the dotted line for the mass distribution.

    Some of them are: Portland Company located at Okota, MBH Power located at Ikorodu, Fix-It Fortified Group, and Dana Motors Group located on Victoria Island.

    The others include Mezovest Company located at Lekki, Autogas African Logistics, and Autogas Nigeria Ltd.

  • FG to offer NARTO, NURTW, RETEAN free of charge CNG kits, installation

    FG to offer NARTO, NURTW, RETEAN free of charge CNG kits, installation

    The Presidential Compressed Natural Gas Initiative (P-CNGI) announced on Thursday, July 11, that it will offer free conversion kits and installations for commercial transport operators, including the Nigerian Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW), Road Transport Employer’s Association of Nigeria (RETEAN), Uber, and Bolt operators.

    They will receive a 100% discount on services from the 123 certified conversion workshops identified by the P-CNGI in 23 states of the federation.

    This initiative aims to reduce transportation and production costs.

    The P-CNGI is part of the measures launched by President Bola Tinubu to ease the impact of the removal of the Premium Motor Spirit (PMS) subsidy.

    As a result, five companies participating in the Conversion Incentive Program have signed agreements with the P-CNGI in Abuja.

    The five companies are NipCo Gas; Portland Gas Limited; Fix It 45; ABG Oil and Gas Limited; and the Nigerian Institute of Transportation Technology (NITT).

    Speaking with reporters at the ceremony, P-CNG, Chief Executive Officer, Engr. Michael Oluwagbemi, said: “First and foremost, for commercial operators that are unionized, I talk about the members of RETEAN, NARTO, NURTW, through their unions, they can benefit from almost 100% discount.

     “That is, they will get the kit for free, and installation will also be done for them for free.

    “And this is going to be done through these certified conversion workshops that we are beginning to identify. We have identified about 123 of them.

    “Five of them are here with us today that we are going to be working with here in Abuja. As we expand across the country, we will be activating more of them at a time.”

    He said next week, P-CNGI will sign another agreement that will give a 50% discount write-off on equipment and free-of-charge installation.

    Oluwagbemi said: “We are going to sign the agreement next week. You will be able to benefit from a 50% write-off on the equipment, and then you will get the installation for free.

    “So that means the government will pay for these conversion workshops. To install the equipment, you will get a 50% off.

    “And because of the arrangement we have with these companies, you will be able to also get to pay little by little, so you are not paying any money upfront on day one.”

     All the measures, he said, are targeted at reducing the costs of transportation and production.

    “For the common man, it means lower costs. It means that you will be able to fuel your vehicle at between 40% to 70% less than what you currently do.

    “For those who do not have vehicles, especially with our friends at Bolt and NURTW, they are pledging that they will be passing some of these savings on to you, which will ensure that your transportation fare will be moderated,” he said.

    He revealed that the initiative has over 20,000 kits readily available in the next three months.

    He added that the initiative will distribute them across the 23 states that already have CNG capacity.

    Oluwagbemi said the P-CNGI will extend the program to Niger and Kano States very soon.

    The CEO further noted that the 20,000 kits will be made available under the palliative initiative that was budgeted for last year.

    He revealed that the National Assembly has made additional funding even available this year, and P-CNGI will be rolling out additional kits once the necessary acquisition of materials and conversion kits and cylinders are made available by the third quarter or fourth quarter of this year.

    The CEO said all the pronouncement took immediate effect, stressing, “But as far as we are concerned, work has started. Conversion kits are going to be starting to be installed. Operators, commercial operators of mass transit vehicles that move 90% of Nigerians, by the way, will be able to benefit from this.

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    “They can then pass on their savings to the consumers. The agreement we are signing today is saying, that in return for giving you these kits, you will also pass on those savings to the ordinary Nigerians. So it will begin to have some impact in terms of transportation costs.”

    He said the agreement has no expiring date as long as the owners keep using the vehicles.

    On the target, he said the initiative was aimed at one million conversions in the next three years.

    Meanwhile, the Acting NURTW National President, Comrade Aliyu Isah said should the plan scale through the cost of transportation will crash.

    Speaking on behalf of the participating partners, ABG Oil and Gas, Mr. Mohammed Bawa pledged they will do their bit to ensure the optimum realization of the benefits of the initiative.

  • Revving up on the CNG vehicle initiative

    Revving up on the CNG vehicle initiative

    The Bola Ahmed Tinubu administration is leaving none in doubt of its determination to push the transition to cleaner fuel, especially, Compressed Natural Gas to a logical conclusion, writes ADEYINKA ADERIBIGBE

    With the announcement, penultimate Thursday, of a 50 per cent slash on the cost of conversion from fossil fuel to Compressed Natural Gas (CNG), especially for commercial transporters, the Federal Government is determined not to leave none behind in its push for a shift to cleaner gas.

    Though coming a month after the official planned roll-out, the desire to subsidise conversion for commercial transporters, nonetheless, signified the determination of a government willing to put the money where it mattered.

    For its worth, the decision to target commercial transporters for this strategic relief was meant to bring relief, as the conversion of a two-cylinder gas chamber and kits is said to be about N1.6 million, while one single cylinder goes for between N600,000 and N800,000.

    The rebate is sequel to the Executive Order by President Bola Ahmed Tinubu in May, making it mandatory for all government ministries, agencies and parastatals, to stop purchasing petrol or diesel vehicles and shift to CNG ones.

    Targeting commercial transport operators across urban centres in all the six geo-political zones in the country has been described as a master stroke in getting the critical mass of Nigerians behind achieving President Tinubu’s vision to convert one million vehicles to CNG by 2027.

    Uncommon interest

    Unlike his predecessors, President Tinubu could hardly hide his ‘special interest’ in the CNG transition, which is being coordinated by the Presidential Initiative on Compressed Natural Gas (Pi-CNG).

    Transitioning to a much cleaner fuel from fossil variants has long been mooted by the government. Successive administrations had toyed with deploying the gas, flared for decades on end especially in the Niger Delta Area for transporters.

    This, for instance, was the kernel of the SURE-P programme of former President Goodluck Jonathan. His successor, Muhammadu Buhari equally had intended to inject 10,000 CNG buses across the country. Both failed.

    The CNG is cheaper and more readily available locally, than the refined petroleum products.

    Cleaner and cheaper

    Not only has he been relieved of the hassles of fuel queues at the shortest notice because of the volatility in price, the engine emits cleaner carbon and lasts longer. For him, he has been buying the gas at N250/SCM (Standard Cubic Feet) and needs N5,000 to fill his single cylinder, an amount which couldn’t even assure him 10 litres of (PMS) petrol earlier.

    Corroborating this, the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga said at the take-off of the project, the presidency had decided to compare cost and deployed two vehicles from Abuja to Lagos. While the cost for the vehicle with CNG was about N50, 000, that of PMS, gulped N120, 000.

    Onanuga, who was one of the special guests at the Lagos/Southwest Zonal Stakeholders meeting on CNG organised by the Pi-CNG in May, said the Tinubu administration has its eyes on helping Nigerians to save money, and urged the people to massively rally behind the “CNG Revolution.”

    Admitting that this revolution is almost inevitable, the Managing Director of Portland Gas, Folajimi Mohammed said in relation to cost, CNG-powered vehicles reduce fuel costs by 76 per cent in comparison to Premium Motor Spirit (PMS) petrol.

    He said: “We are seeing close to about 76 per cent savings in cost alone. So, without a doubt, we know that adoption of CNG is almost inevitable.”

    While praising the steps taken so far on the initiative, the President of the Chartered Institute of Transport Administration (CIOTA), Prince Olusegun Ochuko Obayendo urged the Federal Government to give more incentives to Nigerians in order to get more buy-in of the initiative. For him, it would not be out of place to give a 50 percent duties incentive on any imported CNG/Electric vehicles. This, he said, would propel importers and other Nigerians to rally round the policy and boost the volume of CNG vehicles on the nation’s roads (outside of those converted).

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    In their work decarbonisation of the transport sector in Nigeria, an article in the BioOne Digital Library on https://bioone.org/journals/environmental-health-insights/volume-16/issue-1, Chidi E Akujor, Emmanuel E Uzowuru, Sambo S. Abubakar, and Chijioke M. Amakom argued that Nigeria’s huge deposit of natural gas makes the incorporation of CNG-fueled vehicles into the transport sector feasible.

    This implies the possibility of having CNG vehicles in the country, hence decarbonising the transport sector.

    The Programme Director, Michael Oluwagbemi had told this correspondent that the idea was to reverse the trend of flaring and ensure the gas feeds the nation’s transit needs. In the bigger picture, crude oil and its refined variants are what the Federal Government could put up for exportation to earn the foreign exchange and further put the nation on a sound economic footing.

    Oluwagbemi, who reiterated the Federal Government’s commitment at a stakeholders’ meeting of the Pi-CNG and Portland Gas in partnership with NASENI last week, where he was represented by Tosin Coker, said the conversion would focus on supporting the introduction of CNG in buses and rukshacks popularly called tricycles (keke).

    Conversion cost

    While for tricycles, the cost of conversion is about N300, 000, that of a commercial vehicle/saloon car is anything between N600, 000 and N800, 000 for a single cylinder gas component, while the double cylinder, for same, which many found preferable especially for long distance travellers, goes for about N1.2 million. These however depends on the state of cars as cars that are almost derelict may not be suitable for conversion.

    Trucks which go with four, six to eight cylinders would require even more, our correspondent checks revealed.

    Invariably, when the 50 per cent rebate kicks in, beneficiaries would only pay N150, 000; N250, 000 or N300, 000 or N600, 000 (as the case may be for tricycle owners, commercial vehicles/buses or SUVs), whether single or double cylinders.

    On the efficiency of the gas alternative, Assistant General Manager (Corporate Affairs) NIPCO Oil and Gas, a leading indigenous marketer, Mr Taofeek Lawal said ordinarily, a vehicle owner can recover the conversion cost in a year.

    He allayed fear that the gas is susceptible to catching fire, noting that the gas is lighter than air and its chances of fire outbreak unlike the Liquified Petroleum Gas (LPG) are slim.

    He further said since gas cannot be adulterated it has an excellent combustion compared to any other fuel.

     Conversion centres

    A Fact Sheet available to The Nation showed that the Pi-CNG is working with no fewer than nine partners who in return are massively training artisans on the conversion mechanisms in order to ensure that as many Nigerians as are ready have a conversion centre close to them.

    Leading this pack is NIPCO Plc. NIPCO; a leading indigenous gas marketer has established unimpeachable competence having started close to 20 years ago.

    NIPCO has also flagged off the sales of CNG in all its stations across the country especially in Lagos, where it has directed Mobil, one of its subsidiaries to open CNG outlets in their stations.

    Also, there is Green Gas Nigeria, the Nigeria National Petroleum Company Limited, which has even complimented the Pi-CNG by inaugurating a 5.2 million standard cubic feet CNG station at Ilasamaja, in Lagos State. There is also Bovas, whose Managing Director Engr Tolulope Adediran has said the company would be deploying eight mobile stations around Lagos as a pilot study before moving round the country. Bovas has partnered the PiCNG in converting buses of mass transit operators as well as e-hailing taxi services to compressed natural gas.

    Conversions are also being handled by Axxela Limited, Premier LPG Limited, which is located in Lagos and Abuja, Rholuck Services Nigeria Limited. Others are Rolling Energy, which on May 30, 2024, opened its conversion centre at Ilorin, the Kwara State capital and the National Agency for Science and Engineering Infrastructure (NASENI), which on May 31, inaugurated a conversion, filling, reverse engineering and training centre in Utako, Abuja.

    To ensure the penetration of reverse engineering across the country, the Pi-CNG planned to launch an app that will indicate the nearest CNG conversion centre or filling station to Nigerians.

    The Pi-CNG Chief, Oluwagbemi said Pi-CNG will register the converted vehicle owners as beneficiaries of carbon credit.

  • ‘CNG takes only 3% of Nigeria’s gas’

    ‘CNG takes only 3% of Nigeria’s gas’

    Only 3% of Nigeria’s gas is currently deployed for the production of the Compressed Natural Gas (CNG).

    The Minister of State, Petroleum Resources (Gas), Hon. Ekperikpe Ekpo confirmed it yesterday while allaying fears that demand for CNG could result in shortage of other gas derivatives like the Liquefied Petroleum Gas (LPG).

    “You are going to CNG. Are you sure you will be able to sustain it. And when he said that from the daily production in this country, currently we are only using 3%. “That goes a long way to tell us that irrespective of the demands, we can meet the target,” he said.

    He spoke while declaring open the Nigerian National Petroleum Company Limited (NNPCL) CNG station opposite Prince and Princess Estate, Abuja.

    It signified the physical and virtual simultaneous launch of 12 CNG stations in Abuja.

    The minister said, “As you have heard it is going to be simultaneously in 12 other stations. This has shown the willingness and determination of the Federal Government to drive the CNG project. “And of course, as it has been said, gas prosperity programme is in progress. And I am commending NNPCL for living up to the mandate to make sure CNG is available for Nigeria.

    It is irreversible as you have heard.

    He said the Ajaokuta Kaduna Kano Gas pipeline project will be available to contribute to gas supply in the country.

    Speaking earlier, the NNPCL Group Chief Executive Officer, (GCEO), Malam Mele Kyari said the CNG journey is irreversible.

    He insisted that the project is in progress because the development is evident that it is a cheaper and cleaner fuel.

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    He revealed that NNPCL will construct six modern CNG stations between now and December.

    He added that the company will roll out six CNG stations spread across the country.

    Kyari said “It is already work in progress.”

    The GCEO also noted that NNPCL will build an LPG station in Ajaokuta, three stations of its own, two in partnership with other firms.

    Kyari said the essence is to bring the CNG closer to the consumers because transportation is a main factor in the business.

    He said once th AKK pipeline is completed, it will bring gas closer to the end – user.

    Kyari was optimistic that once the distance reduces, the gas price will crash

    The NNPCL boss said, “We will construct six CNG modern stations spread across the country between now and December you will see these stations.

    “ We are also building another station. We are building an LNG station in Ajaokuta. Three stations: one belonging to us, two with a partnership.

    “What this does is to bring CNG closer to its consumers across the country particularly as distance matters in transporting gas.

    “That is why we are doing this project because it is accessible and it is easier. And this is shorter because as soon as we complete the AKK pipeline it takes us closer and closer to end users.

    “ As we reduce the distance, price will come down and you will see cheaper and cheaper price across the country particularly areas that a distant from the source of the gas.”

    Meanwhile, the Cleanenergy Innovation Limited (CIL) Executive Vice Chairman Shettima Bukar Imam, described the launch as the beginning of NNPCL commitment to diversify its energy offerings and promote President Ahmed Tinubu, CNG initiative.

    He noted that “These new facilities are designed to ensure safe, reliable, and efficient service to all customers, aligning with global best practices.”Continuing, he said, the ‘CIL team’s expertise and dedication with the full support of the NRL team and its senior management, after meticulous planning and safeguard, have ensured the successful completion and delivery of this 1st step of the project, in record time from the arrival of the equipment in Nigeria !

    “Thus, setting a new benchmark for CNG infrastructure in the region. These CNG stations are a testament to what can be achieved through collaboration and innovation.”

  • CNG takes only 3% of Nigeria gas, says FG

    CNG takes only 3% of Nigeria gas, says FG

    Only 3% of Nigeria’s gas is currently deployed for the production of Compressed Natural Gas (CNG).

    The minister of state, Petroleum Resources (Gas), Hon. Ekperikpe Ekpo confirmed it on Thursday, July 4, while allaying fears that demand for CNG could result in a shortage of other gas derivatives like the Liquefied Petroleum Gas (LPG).

    “You are going to CNG. Are you sure you will be able to sustain it. And when he said that from the daily production in this country, currently we are only using 3%. “That goes a long way to tell us that irrespective of the demands, we can meet the target,” he said.

     He spoke while declaring open the Nigerian National Petroleum Company Limited (NNPCL) CNG station opposite Prince and Princess Estate, Abuja.

    It signified the physical and virtual simultaneous launch of 12 CNG stations in Abuja.

    The minister said: “As you have heard it is going to be simultaneously in 12 other stations. This has shown the willingness and determination of the Federal Government to drive the CNG project. “And of course, as it has been said, the gas prosperity programme is in progress. And I am commending NNPCL for living up to the mandate to make sure CNG is available for Nigeria. It is irreversible as you have heard.

    He said the Ajaokuta Kaduna Kano Gas pipeline project will be available to contribute to the gas supply in the country.

    Speaking earlier, the NNPCL Group Chief Executive Officer, (GCEO), Malam Mele Kyari said the CNG journey is irreversible.

    He insisted that the project is in progress because the development is evident that it is a cheaper and cleaner fuel.

    He revealed that NNPCL will construct six modern CNG stations between now and December.

    He added that the company will roll out six CNG stations spread across the country.

    Kyari said: “It is already a work in progress.”

    Read Also: Fed Govt slashes CNG conversion cost by half

    The GCEO also noted that NNPCL will build an LPG station in Ajaokuta, three stations of its own, two in partnership with other firms.

    Kyari said the essence is to bring the CNG closer to the consumers because transportation is a main factor in the business.

    He said once the AKK pipeline is completed, it will bring gas closer to the end-user.

    Kyari was optimistic that once the distance was reduced, the gas price would crash

    The NNPCL boss said, “We will construct six CNG modern stations spread across the country between now and December you will see these stations.

    ” We are also building another station. We are building an LNG station in Ajaokuta. Three stations: one belonging to us, two with a partnership.

    “What this does is to bring CNG closer to its consumers across the country, particularly as distance matters in transporting gas.

    “That is why we are doing this project because it is accessible and it is easier. And this is shorter because as soon as we complete the AKK pipeline it takes us closer and closer to end users.

    ” As we reduce the distance, the price will come down and you will see cheaper and cheaper prices across the country particularly areas that a distant from the source of the gas.”

    Meanwhile, the Cleanenergy Innovation Limited (CIL) Executive Vice Chairman Shettima Bukar Imam, described the launch as the beginning of NNPCL’s commitment to diversify its energy offerings and promote President Ahmed Tinubu, CNG initiative.

    He noted: “These new facilities are designed to ensure safe, reliable, and efficient service to all customers, aligning with global best practices.”

    He said the ‘CIL team’s expertise and dedication with the full support of the NRL team and its senior management, after meticulous planning and safeguarding, have ensured the successful completion and delivery of this 1st step of the project, in record time from the arrival of the equipment in Nigeria!

    “Thus, setting a new benchmark for CNG infrastructure in the region. These CNG stations are a testament to what can be achieved through collaboration and innovation.”

  • FULL LIST: Nine places where you can convert your petrol car to CNG

    FULL LIST: Nine places where you can convert your petrol car to CNG

    The Presidential Initiative on Compressed Natural Gas (Pi-CNG) announced a 50 percent cut on the cost of conversion of petrol-powered vehicles to gas on June 27.

    The programme director, Michael Oluwagbemi, who dropped the hint, said it was part of Federal Government efforts to encourage a popular shift to a more cost-effective and sustainable transportation system.

    With the discount, the conversion cost which is N1.2 million will not be N600,000.

    Here are six places you can change your petrol vehicles to CNG:

    1. NIPCO Plc

    NIPCO Plc is a major player in the Nigerian oil and gas industry, and they have recently ventured into the CNG market.

    You can find the NIPCO PLC CNG station locator here

    2. Green Gas Nigeria:

    Green Gas Nigeria is a leading provider of CNG conversion services in Nigeria.

    3. Nigerian National Petroleum Company (NNPC) Limited:

    Nigerian National Petroleum Company (NNPC) Limited partnered with the PCNGI to provide conversion centres.

    On May 30, NNPC inaugurated a 5.2 million standard cubic feet per day (mmscfd) CNG station at the Ilasamaja area of Lagos state.

    4. Bovas:

    Two months ago the federal government, through the Presidential Compressed Natural Gas Initiative (P-CNGi) partnered with Bovas Group to convert vehicles of mass transit operators as well as cab-hailing services to Compressed Natural Gas (CNG).

    You can find the NIPCO PLC CNG station locator here

    5. Axxela limited:

    The Nigerian National Petroleum Company Limited in June reached a Final Investment Decision (FID) with Axxela Limited to deliver six Compressed Natural Gas mother and service stations plants and stations of 5.2mmscfd capacity each, in selected locations spread across the six geopolitical zones in Nigeria.

    6. Premier LPG Limited:

    Premier LPG Limited is a trusted name in the Nigerian energy sector, offering a range of solutions for cleaner and more sustainable transportation.

    In addition to providing liquefied petroleum gas (LPG) for vehicles, Premier LPG also specializes in CNG conversions.

    Premier LPG is located in Lagos and Abuja.

    7. Rholuck Services Nigeria Limited

    Rholuck Services Nigeria Limited specializes in providing alternative fuel solutions, including CNG conversions, to customers in Nigeria.

    Their team of experienced technicians utilizes state-of-the-art equipment and technology to ensure safe and efficient conversions. Rholuck is located in Abuja, Nigeria’s capital.

    Read Also: Fed Govt slashes CNG conversion cost by half

    8. Rolling Energy:

    Presidential CNG Initiative (PCNGI), with Rolling Energy on May 30, 2024, announced the launch of the PCNGI conversion and refueling site in Ilorin.

    The facility marked a milestone in PCNGI’s mission to drive sustainable energy solutions.

    9. NASENI:

    President Tinubu on May 31 inaugurated the National Agency for Science and Engineering Infrastructure (NASENI) Compressed Natural Gas (CNG) Conversion, Filling, Reverse Engineering and Training Centre in Utako, Abuja.

    Executive Vice Chair of NASENI, Khalil Halilu, in a briefing, said this marked another NASENI initiative to support the federal government’s Renewed Hope Agenda, particularly on sustainable energy alternatives and a clean energy ecosystem.

    The PCNGI is planning to launch an app that will indicate the nearest CNG conversion centre or filling station to Nigerians, to achieve the President’s vision to convert one million cars by 2027.

  • FG reduces CNG vehicle conversion cost by 50% for transporters

    FG reduces CNG vehicle conversion cost by 50% for transporters

    …CNG saves fueling cost by 77%

    The Presidential Initiative on Compressed Natural Gas (P-CNGI) Programme Director, Michael Oluwagbemi, on Thursday, June 27, announced a 50% conversion cost reduction for transporters.

    Represented by Tosin Coker during the stakeholders’ event of the P-CNGI and Portland Gas in partnership with NASENI in Abuja, he said the initiative is boosting the sector by supporting the introduction of CNG buses and tricycles (Keke).

    The theme of the meeting was: “Driving Sustainable Transportation: Accelerating CNG Adoption in Nigeria.”

    He said: “More importantly, in an effort to reduce the cost of public transport, we are catalyzing the sector by supporting the introduction of CNG buses and tricycles (Keke).

    “In the next days, you will witness these buses on the streets of Abuja, even as we also start to make conversion kits available at a 50% discount to the transport sector.”

    Also speaking, Portland Gas, managing director, Folajimi Mohammed revealed that CNG-powered vehicles reduce fuel costs by 76% in comparison to Premium Motor Spirit (PMS) petrol.

    He said, “We are seeing close to about 76% savings in cost alone. So without a doubt, we know that adoption of CNG is almost inevitable.”

    He said ordinarily, the conversion cost is N1.2 million, which the vehicle owners can recover in a year.

    He allayed fear that the gas is susceptible to catching fire, noting that it is lighter than air its chances of fire outbreak are slim.

    Read Also: FEC okays N1.99b CNG vehicles, N985m for body scanners

    “Is it safe? I am sure this is a very pertinent question everybody has asked. Why do I have gas in my truck? What happens in the event of an explosion?

    “Let us make this understandable. The component of CNG is methane. CH4 is lighter than air.

    “When we mean lighter than air, in the event there is any release of it, it goes and expresses into the air.

    “Have there been incidents? Yes, there has been. But the chances are extremely very narrow.”

    He said since gas cannot be adulterated it has an excellent combustion compared to any other fuel.

    He explained that since the CNG points are still few, the conversion still makes provision for alternative fueling.

    Mohammed also said P-CNGI registers the converted vehicle owners as beneficiaries of carbon credit.

    Continuing, Oluwagbemi said that over $50 million has been mobilized in the CNG sector since the inception of the P-CNGI, a feat that was not attained in the last 10 years.

    “Financing and Enabling Infrastructure: In December 2023, we hosted our first investor forum, which saw tremendous participation from companies now investing in the sector.

    “I am pleased to report that well over $50 million has been mobilized directly by the sector since then, more than any amount mobilized in the last ten years combined,” he said.

    He said the initiative is also enabling ordinary Nigerians, particularly transport operators, to convert their vehicles.

    He recalled that on May 29, 2024, the initiative announced the Conversion Incentive Program, making it easier for Nigerians to adopt CNG.

     He noted that the effort is supported by private sector partners, development funds, and banks, all eager to finance this transformative initiative.

    The Program Director said developing this industry needs the active participation of the private sector which government cannot do alone.

    He added: “However private sector investors need open, fair, transparent and predictable regulations to feel secure and ensure their investments can thrive.

    “To that effect, in collaboration with the Standards Organization of Nigeria, we approved over 80 standards and procedures for the CNG conversion industry in March 2024.

    “Regulatory bodies, including NMPDRA, SON, FRSC, NADDC, and the National Board of Technical Education, are now working together to create a one-stop shop called the Nigerian Gas Vehicle Monitoring System (NGVMS).

    “This streamlined process will ensure safety and efficiency for all stakeholders.

    In the last few months, we have worked tirelessly with our core and affiliate partners, including our hosts today, to realize President Bola Ahmed Tinubu’s vision for Nigeria.

    “We at Pi-CNG have set an ambitious target of 1 million vehicle conversions by 2027. One thing I know for sure is that as Nigerians, if we are focused and determined, we can achieve anything. Indeed, Nigerians are the most innovative, resilient, adaptable, and capable people anywhere in this world.

    “It is time for us to use our natural resources (our human resources for good) and our gas resources for the greater good, to drive our transportation sector and economy forward.”

  • Over $50m invested in CNG initiative – CEO

    Over $50m invested in CNG initiative – CEO

    • Says 20,000 kits to be rolled out soon

    The Presidential Compressed Natural Gas Initiative (P-CNGi) said it is set to roll out 20,000 CNG conversion kits at 50% cost. This is coming with free installation for transport union members as part of efforts to ensure rapid growth of the scheme.

    P-CNGi Programme Director/Chief Executive, Engineer Michael Oluwagbemi disclosed this at Northern Stakeholders Engagement Forum in Kaduna, Kaduna State.

    He said 120 conversion centers were under construction across the country with eight ready for commissioning in four states namely Kwara, Rivers, Abuja and Lagos.

    “We are here to engage stakeholders, labour unions, transport workers, state government, technicians and private sector on the Compressed Natural Gas (CNG). We have over 20,000 kits that we are making available immediately with the transport sector, National Union of Road Transport Workers (NURTW), Road Transport Employees Association of Nigeria (RTEAN) and National Association of Road Transport Owners (NARTO) being our immediate concern.

    “We are making the kits available at 50% discount and installation will be free. With the pilot states being Ilorin, Kwara state, FCT, Abuja, Lagos state and Port Harcourt, Rivers state. The plans of Mr. President are to roll out CNG vehicles immediately, but we need the labour unions and private sector to drive the initiative. Eight of the conversion centers in the four states will be launched in the next week.

    “The conversion center in Kaduna is ready to go and it’s going to be part of the eight to be rolled out. We also have some conversion centers in Kaduna state that are under construction. We have Nippco Center and Bain Center in Kaduna, NITT in Zaria and others in Kano and Abuja. Over 120 conversion centers are currently under construction, from just seven last November. The President is working to ensure that 1 million CNG vehicles are converted by the end of 2027.

    Read Also: ‘Fed Govt invests $50m in CNG initiatives’

    “Over $50 million have been invested in the last one year and more would be invested in the coming years to achieve CNG powered vehicles that are cleaner, safer, cheaper and more available. We are working with Ferma and other business agencies,” the P-CNGi boss said.

    One of the stakeholders and Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Hammed Adekunle Fashola, said his association would support the P-CNGi with 150 conversion centers at their filling stations across the country.

    In his message, Kaduna state Governor Uba Sani, who was represented by the state Commissioner for Public Works and Infrastructure, Architect Ibrahim Hamza, said: “Transportation is one of the major promoters of our socio-economic activities which deals with the movement of persons, goods and freight from one point to another. “According to the Nigeria Bureau of Statistics (2018); there are almost 12 million vehicles plying our roads daily.”