The Nigerian National Petroleum Company Limited (NNPC Ltd) has joined forces with NIPCO Gas Limited to establish 56 Compressed Natural Gas (CNG) stations throughout Nigeria.
Compressed Natural Gas (CNG) is a cleaner alternative fuel for vehicles, stored at high pressure, which offers both environmental benefits and cost-effectiveness.
The partnership was announced during a press briefing in Abuja on Thursday, led by Malam Mele Kyari, the Group Chief Executive Officer of NNPC Ltd.
This initiative complements the phased deployment of 56 CNG stations already planned by NNPC Retail across the nation.
The collaboration between NNPC Ltd and NIPCO Gas Limited aims to expand the country’s CNG infrastructure, making CNG more accessible and accelerating its adoption as a cheaper and cleaner alternative fuel for buses, cars, and tricycles, commonly known as Keke NAPEP.
Regarding the pricing of CNG, Kyari stated that it would be determined by market forces, but assured that the cost would be affordable due to the stability of gas prices compared to petroleum.
The project is expected to yield several advantages for Nigerians, including access to more affordable fuel, reduced transportation costs, lower carbon emissions, the establishment of new business value chains, and numerous job opportunities.
Mallam Mele Kyari said,
“Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three Mother stations.
“Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing carbon emissions and associated impact on climate.
“The project will be rolled out in phases, the first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024.
“The second phase, comprising 35 CNG stations, will support inter-city transformation and will be ready by the first quarter of 2025,”
“NNPC Retail and NIPCOS stations to co-locate the CNG refueling stations and also provide workshops for vehicle conversion/retrofit.”