As part of its effort to provide an alternative source of fuel for Nigerians and lessen the impact of subsidy removal on petrol, the Federal Government inaugurated a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos on Thursday.
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who inaugurated the plant at the Isolo Industrial Area, Ilasamaja, in Lagos on Thursday, 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.
According to the statement by Mr. Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., Ekpo 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,” the Minister stated.
Ekpo noted that using CNG as a transport fuel is a mature technology used globally, as it is the cleanest burning fuel in terms of nitrous oxide and soot emissions.
The minister added that CNG passenger vehicles emit 5–10% less CO2 than comparable gasoline-powered passenger vehicles, even when used to power passenger cars and city buses.
In his opening remarks, Mallam Mele Kyari, GCEO of NNPC Limited, said that in order to improve energy security and make it easier for Nigerians to get CNG, NNPC had reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service station plants and stations with a capacity of 5.2 mm scfd each in chosen locations across the six geopolitical zones, including the FCT, to make it easier for people to get bulk CNG.
He stated that the move was in addition to NNPC Retail’s phased CNG deployment in over 100 stations across the country, as well as other joint venture partnerships on CNG.
Specifically, Kyari revealed that the commissioning of the NNPC CNG Station in Ilasamaja, Lagos, was part of the NNPC’s efforts to grow domestic gas supply and utilization by deploying gas infrastructure nationwide.
He said the Petroleum Industry Act (PIA) explicitly mandated NNPC to promote domestic gas utilization, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilize our gas resources for industrialization, power generation, and economic prosperity for all,” Kyari stated.
In his speech, the Lagos State Governor, Babajide Sanwo-Olu, said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation, and industrialization in the state.
He said in demonstration of its resolve to champion CNG utilization across Lagos State, the state government has concluded 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, represented by the State Commissioner of Environment, Mr. Ola Oresanya, said the state is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the state and beyond.
In his goodwill message, the Chief Executive, Presidential CNG Initiative, Engineer Michael Oluwagbemi, described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.
The CEO of Axxela, Bolaji Osunsanya, thanked all the stakeholders, especially the NNPC, for its consistent vision towards the delivery of the plant, stressing that his company’s many years of preparation have now met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.
The NNPC CNG Station Ilasamaja is a 5.2MMscf per day capacity station that can serve vehicles and also supply gas to industries and other companies.
The facility has dispensing points for filling cars, buses, trucks, and tricycles, utilising CNG, and can fill about 3,700 cars or 600 trucks or buses every day, thereby providing a constant supply of CNG.
The state-of-the-art CNG plant was built through a partnership between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (an Axxela Company).
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