In order to give Nigerians an other fuel source, the Federal Government opened a 5.2 million Standard Cubic Feet per day (mmscfd) Compressed Natural Gas (CNG) facility in Lagos.
At the plant’s opening on Thursday at the Isolo Industrial Area in Ilasamaja, Mr. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), stated that the initiative will provide Nigerians with another source of fuel.
“It will also mitigate the effect of the removal of subsidies on gasoline within the nation,” he continued.
According to Ekpo, the event, which has as its subject “From Gas to Prosperity: CNG for All,” marks a significant turning point in the nation’s development of reasonably priced, environmentally friendly, and safe energy supplies.
The minister referred to 2024 as a “historic year for Nigerians,” noting that many new beginnings had been ushered in by President Tinubu’s brave decision to do away with fuel subsidies and encourage the acceptance and widespread usage of LPG.
Even yet, there have been challenges since the Premium Motor Spirit (PMS) subsidy was eliminated.
The minister said, “It has also given us a once-in-a-lifetime opportunity to develop and adopt more affordable, efficient, and sustainable energy alternatives.”
Ekpo emphasized that CNG is the cleanest burning fuel in terms of emissions of soot and nitrogen oxide, and it is a well-established technology that is utilized worldwide in transportation.
He claims that compared to equivalent gasoline-powered passenger vehicles, CNG passenger vehicles produce 5–10% less CO2. It may be used to power passenger automobiles and city buses.
The Nigerian National Petroleum Company Ltd.’s Group Chief Executive Officer, Malam Mele Kyari, had earlier stated in his remarks that the development was made to preserve energy security and increase the country’s population’s access to CNG.
Axxela Ltd. and NNPC Ltd. have made a Final Investment Decision (FID) for the delivery of six CNG mother and service station plants, according to Kyari.
In order to facilitate access to bulk CNG, he added, the corporation operated stations with a capacity of 5.2 mm SCF/d at certain sites throughout the six geopolitical zones, including the Federal Capital Territory.
He added that the action was in addition to other joint venture agreements on CNG and NNPC Retail’s progressive deployment of CNG in more than 100 stations nationwide.
According to Kyari, the opening of the NNPC CNG Station in Ilasamaja, Lagos, was a component of the company’s national deployment of gas infrastructure, which aims to increase domestic gas supply and consumption.
He said that NNPC’s commitment to implementing vital gas infrastructure projects across the nation was strengthened by the Petroleum Industry Act (PIA), which specifically required the firm to encourage the use of local gas.
“NNPC will keep delivering more strategic projects for the good of our nation. We will use our gas resources for economic prosperity, industrialization, and power generation for everybody,” Kyari declared.
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.
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 his company’s many years of preparation met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.
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).
