The Federal Government has inaugurated a 5.2 million Standard Cubic Feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos.
Mr Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), during the inauguration of the plant at the Isolo Industrial Area, Ilasamaja on Thursday, May 30, 2024, said that the development would provide an alternative source of fuel for Nigerians.
“It will also lessen the impact of subsidy removal on petrol in the COUNTRY,” he added.
Ekpo said that 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.
The minister described 2024 as a “historic year for Nigerians”, adding that President Tinubu’s courageous decision to eliminate fuel subsidies, promote the acceptability and broader use of LPG, 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 said.
Ekpo emphasised the use of CNG as a transport fuel is a mature technology used globally and the cleanest burning fuel in terms of Nitro-oxide and soot emissions.
According to him, it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10 per cent less CO2 than comparable gasoline-powered passenger vehicles.
Earlier in his remarks, Malam Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Company Ltd., said that the development was to maintain energy security and provide more access to CNG by the Nigerian populace.
Kyari said that NNPC Ltd. had reached a Final Investment Decision (FID) with Axxela Ltd. to deliver six CNG mother and service station plants.
He also said that the company had stations of 5.2mmscfd capacity each in selected locations spread across the six geopolitical zones, including the FCT, to ease access to bulk CNG.
He stated that the move was in addition to NNPC Retail’s phased deployment of CNG in over 100 stations across the country as well as other Joint Venture partnerships on CNG.
Kyari revealed that the inauguration of the NNPC CNG Station in Ilasamaja, Lagos, was part of NNPC’s efforts to grow domestic gas supply and utilisation by deploying gas infrastructure nationwide.
He said that the Petroleum Industry Act (PIA) explicitly mandated NNPC to promote domestic gas utilisation, 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 utilise our gas resources for industrialisation, power generation and economic prosperity for all,” Kyari said.
In his goodwill message, the Lagos State Governor, Babajide Sanwo-Olu, said the establishment of the CNG plant aligns with the state’s vision for economic development, job creation and industrialisation in the state.
He said that in the bid to demonstrate the state’s resolve to champion CNG utilisation across Lagos State.
According to him, the state government has concluded plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will start operations before the end of the year.
Also, Ogun State Gov., Dapo Abiodun, represented by the State Commissioner of Environment, Mr Ola Oresanya, said that the state was 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 of the Presidential CNG Initiative, Mr Michael Oluwagbemi, described the inauguration of the plant as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.
The CEO of Axxela, Mr Bolaji Osunsanya, thanked all the stakeholders, especially the NNPC for its consistent vision toward the delivery of the plant.
He said that his company’s many years of preparation 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/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 Ltd. (NGML) and Transit Gas Nigeria Ltd. (An Axxela Company).
By Yunus Yusuf
