FG, Firm Launch CNG Facilities In Kano, Target 2,500 Vehicles Daily

The Federal Government and Rolling Energy Limited have commissioned three compressed natural gas (CNG) facilities in Kano State as part of plans to expand gas infrastructure across northern Nigeria and reduce transportation costs.

The facilities, which can collectively serve up to 2,500 cars and tricycles and 200 trucks daily, are part of a partnership between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Rolling Energy to develop 18 gas infrastructure projects across three states and the Federal Capital Territory.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, commissioned the facilities on Tuesday.

They comprise a liquefied-to-compressed natural gas (LCNG) distribution hub and retail station at Tamburawa, as well as an LCNG retail station at Hotoro.

Speaking at the commissioning, the Executive Director of MDGIF, Oluwole Adama, said the projects were designed to address infrastructure gaps in the gas value chain and improve access to cheaper alternative energy.

He said the facilities would provide a major boost to commercial transportation and goods distribution, particularly in northern Nigeria.

Adama disclosed that petrol currently sells for about ₦1,420 per litre in Kano, compared with approximately ₦600 for the equivalent energy from CNG.

He explained that a tricycle operator spending ₦14,200 daily on 10 litres of petrol could reduce the expenditure to about ₦6,000 by switching to CNG.

According to him, this represents a daily saving of ₦8,200 and nearly ₦250,000 monthly.

He said the savings could improve the earnings of transport operators and potentially reduce the cost of moving agricultural produce, livestock and manufactured goods across the region.

Adama explained that the Tamburawa facility, located in Dawakin Kudu Local Government Area, has a capacity of 300,000 standard cubic metres daily, with infrastructure for LNG storage, regasification and CNG distribution.

He added that the facility could also supply other gas stations, while its adjoining retail outlet would serve motorists directly.

The Hotoro facility in Tarauni Local Government Area has a capacity of 21,000 standard cubic metres daily.

Adama said the MDGIF was established under Section 52 of the Petroleum Industry Act to support the development of midstream and downstream gas infrastructure through partnerships with private investors.

He urged fleet owners, transport unions and businesses to take advantage of the facilities, while emphasising the need to maintain safety standards and build customer confidence in gas-powered transportation.

The Minister of State for Petroleum Resources (Gas), Ekpo, described the commissioning as a demonstration of the Federal Government’s commitment to translating its gas policies into infrastructure.

“What we commission today is more than three pieces of infrastructure. It is Renewed Hope made tangible,” he said.

He added that the government would continue to mobilise private-sector investment to expand access to gas for households, businesses and the transportation sector.

In his remarks, the Founder and Chief Executive Officer of Rolling Energy, Mubarak Danbatta, said the project was significant because of the challenges associated with accessing gas in northern Nigeria.

He explained that the Tamburawa hub would provide a closer supply point for investors seeking to establish CNG stations in Kano, Jigawa, Zaria and neighbouring locations.

According to him, the development would reduce dependence on gas supplies transported from Ajaokuta and Obajana in Kogi State.

Danbatta disclosed that the company had also incorporated vehicle conversion workshops into the facilities, using Greco CNG kits.

He said the Tamburawa workshop could convert 20 vehicles daily, while the Hotoro facility had a capacity of six vehicles.

“We are not building stations only for our own customers. We are creating infrastructure that enables other businesses to serve their own customers and grow,” he said.

He further disclosed that the partnership with MDGIF covered plans to establish regasified liquefied natural gas (RLNG) gas-to-power facilities to support industrial operations.

Danbatta said Kaduna and Borno states were next in the expansion plan, with three facilities proposed in each state.

He added that Jigawa, Katsina, Sokoto and Zamfara were also being considered for future expansion.

Rolling Energy had previously commissioned gas facilities in Ilorin, Jahi and Karu in Abuja as part of its investments in Nigeria’s alternative fuel infrastructure.

The Kano State Governor, Abba Kabir Yusuf, was represented at the commissioning by the Commissioner for Power and Renewable Energy, Gaddafi Sani Shehu.

Also present were the President of the Nigerian Academy of Engineering, Prof. Umar Garba Danbatta, representatives of the Presidential Initiative on CNG and Electric Vehicles, regulators, community leaders and other industry stakeholders.