The Nigerian National Petroleum Company Limited (NNPCL) has announced a strategic partnership with NIPCO Gas Limited to deploy Compressed Natural Gas (CNG) stations across the country, offering a more affordable alternative for motorists. The partnership aims to comply with President Bola Ahmed Tinubu’s directive to minimize the effects of fuel subsidy removal.
In a Press Statement issued by Garba Deen Muhammad, the Chief Corporate Communications Officer of NNPCL, the company expressed its commitment to providing cheaper alternative fuel to motorists. The collaboration with NIPCO Gas Limited will see the expansion of the CNG infrastructure, making it more accessible and accelerating the adoption of this cleaner and cost-effective fuel for buses, cars, and tricycles. This move is expected to significantly reduce transportation costs and promote sustainable economic growth.
Under the NNPCL-NIPCO strategic partnership, 35 state-of-the-art CNG stations, including three Mother stations, will be constructed nationwide. Once fully operational, these stations have the capacity to serve over 200,000 vehicles daily, resulting in substantial savings for Nigerian motorists.
The project will be implemented in two phases: the first phase, consisting of 21 CNG stations, will primarily cater to intra-city transportation and is expected to be ready by the first quarter of 2024. The second phase, comprising 35 CNG stations, will support inter-city transportation and is scheduled to be ready by late 2024. Additionally, NNPC Retail will deploy an additional 56 stations across the country to further complement the initiative.
NIPCO Gas Limited, a key downstream operator in Nigeria’s oil and gas industry, is already operating 14 CNG stations and has successfully converted over 7,000 vehicles to run on CNG. Their technical expertise and experience in the field will play a pivotal role in ensuring the success of this venture and boosting its positive impact on the nation’s economy.
The benefits of this initiative extend beyond cost savings for motorists. Leveraging Nigeria’s abundant natural gas resources, the project aims to provide Nigerians with access to more affordable fuel, reduce transportation costs, lower carbon emissions, and create new business opportunities and job streams.
As the nation looks toward a prosperous future, NNPCL is committed to broadening CNG availability and reliably delivering energy. This partnership demonstrates their dedication to continuously create value and embrace cleaner energy solutions for a sustainable future.
Transitioning from traditional fossil fuels to renewable energy, such as CNG, holds promise in mitigating the current global crises. NIPCO’s role as a key player in the distribution of White Oil Products, Compressed Natural Gas (CNG), and Liquified Petroleum Gas (LPG) in Nigeria reflects their commitment to fostering a greener and more environmentally friendly energy landscape.