CNG: FG targets $4.4bn annually from vehicle conversion

As part of the Federal Government’s plans to mitigate the effects of fuel subsidy removal with a cheaper energy alternative, the Presidential Initiative on Compressed Natural Gas, PCNGi, has said that Nigeria would save over $4.4 billion annually by converting over one million vehicles to Compressed Natural Gas (CNG).

Making a presentation at a Co-Creation Session on the Nigeria Gas Vehicle Monitoring System, NGVMS, in Abuja on Tuesday, the Coordinator, Regulations, Compliance, and Facilitation, Zayyan Tambari, said this was coming on the heels of the present administration’s drive to push for increased gas supply to the domestic market.

He disclosed that about $890 million investment would be required to develop infrastructure for the alternative fuel.

Tambari said that it expected the government to convert about one million vehicles to CNG, which would save about $4.4 billion annually in petrol importation.

He explained that the government expects CNG to replace 20 percent of the current 50 million litres of petrol consumed in the country daily.

Speaking earlier, the Minister of State Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, said the government was determined to ensure that Nigeria reaps the full benefits of its gas resources.

Mr. Abel Nsa, representing Ekpo at the event, pointed out that specific materials and tools would be required across the value chain to ensure the safe usage of CNG as fuel for vehicles.

He said: “We are at the point where we need to begin to talk about the safety issues in the use of CNG.

“We have got to educate ourselves, and we have got to use specific tools and materials hitherto that we have not been using.

“If you will recall what happened in 2009–2001 with the emergence of the cell phone during President Obasanjo’s regime, from an economic perspective, a lot is going to happen. It is going to give us a lot of tools on how to utilize CNG.”

Mr. Ogbugo Ukoha, the Executive Director, Distribution System, Storage, and Retailing Infrastructure, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, stated that the agency, in its quest to promote the use of gas, has gazetted two regulations that address the technical framework and specifications for the development of gas retail infrastructure and fuel quality standards.