The projected mass rollout of Compressed Natural Gas (CNG) refilling outlets across all states of Nigeria is becoming a reality with seven banks ready to manage a revolving fund facility from the African Development Bank(AfDB), LEADERSHIP learnt.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) had sealed the deal with the bank following removal of petrol subsidy by President Bola Tinubu.
National president of IPMAN, Elder Chinedu Okoronkwo, disclosed this development to LEADERSHIP on phone yesterday.
Our correspondent gathered that the association made the approach after it conducted a market survey on the cost of converting existing petrol stations to CNG outlets.
LEADERSHIP authoritatively reports that IPMAN had already commenced identification of members interested in co-locating CNG dispensers and infrastructure on their existing petrol retail outlets.
The exercise is to identify qualified potential candidates for loans to support its target of establishing 10-20 co-located CNG stations in each state of the federation during the first phase of its planned nationwide rollout.
From a document cited by our correspondent, the minimum investment required for a CNG station with two dispensers and four hoses co-located in an existing or inactive station capable of dispensing 250,000 standard cubic feet daily SCFD or 500,000 SCFD of natural gas, equivalent to 7,480-15,000 litres of petrol a day, is approximately N300 million.
Under the loan arrangement, interested marketers would make 15 per cent down payment with the rest of the fund repaid over ten years.
Also, a dedicated CNG station serving trucks with daily dispensing capacity of 500,000 SCFD to 1,000,000 SCFD of natural gas, equivalent to 14,280 to 28,000 litres of diesel a day, requires investment of approximately N1.4 billion.
However, retrofitting a typical auto workshop under the deal which is found in a filling station requires an investment of approximately N8 million.
Meanwhile, building a new CNG station with 4-10 dispensers requires an investment of about N500 million.
It would be recalled that IPMAN said it was ready to roll out cheap fuel for Nigerians at N100 per litre to cushion the effect of petrol subsidy removal on Nigerians
Okoronkwo had, in the wake of the subsidy removal, announced that the association was 90 per cent ready to roll out CNG as an alternative fuel, which would sell between N100 to N110 per litre before the end of June.