High Petrol, Transport Costs: NNPC Intervenes, Rolls Out 12 New CNG Stations

The Nigerian National Petroleum Company Ltd (NNPC), in partnership with NIPCO, has commissioned 12 Compressed Natural Gas (CNG) stations in Abuja and Lagos in a move to alleviate the burden of high transportation costs on Nigerians following the removal of fuel subsidy by President Bola Tinubu.

Under the Presidential CNG initiative, NNPC & NIPCO Gas entered into a strategic partnership for expansion of CNG Stations across Nigeria. Under this partnership, 35 CNG Recall that Tinubu on May 29, last year announced the removal of subsidy on petrol, a development that made the price rise from N197 per litre to N617 per litre, thus significantly increasing the cost of fuel and raising the cost of transportation.

Stations are to be constructed across Nigeria, with stations strategically located to offer CNG to a wide range of vehicles including: tricycles, cars, buses and Heavy Transport Vehicles.
The newly built CNG stations which had six in Lagos and six in Abuja were commissioned by the minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.

Speaking during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos, group chief executive officer of NNPC Limited Mele Kyari declared that the drive to bring CNG closer to Nigerians has since commenced and is irreversible.

Kyari, said in addition to the massive deployment of CNG stations nationwide, the NNPC Ltd and its partners would also build three Liquefied Natural Gas (LNG) stations in Ajaokuta.

“There is simply no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress, we will cover the gap in order to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari stated.

The GCEO commended President Bola Ahmed Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper sources of energy to Nigerians.
While assuring that the NNPC Ltd will continue to deliver more strategic gas projects for the benefit of Nigerians in line with the Presidential CNG Initiative of bringing prosperity to all Nigerians, Kyari reaffirmed the determination of the NNPC to guarantee the nation’s energy security.

Also speaking at the occasion, the managing director, NNPC Retail Limited, Huub Stokman revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites.

“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stokman added.

In his remarks, the minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo said the commissioning of the stations will not only provide economic benefits by creating jobs and stimulating local economies, it will also contribute significantly to Nigeria’s national goals of reducing emissions and combating climate change.

On his part, the chairman of the NNPC Board of Directors, Pius Akinyelure said increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.

Following the removal of fuel subsidy and the declaration of the Presidential Compressed Natural Gas (CNG) initiatives, NNPC Limited has taken the lead in the deployment of Auto-CNG Stations across Nigeria.

Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for construction of thirty-five (35) CNG stations across the various geographical zones of Nigeria.

These CNG stations feature advanced reciprocating and hydraulic booster compressors, ensuring a dispensing pressure of 200 bar for CNG vehicles.

The CNG is supplied to stations in Abuja and Lagos via virtual transportation from Mother Stations in Ajaokuta, Kogi state, and lbafo, Ogun state. The Abuja station will soon connect to the AKK Pipeline, becoming a Mother CNG station. The stations’ power needs are met by gas-driven generators, reducing carbon emissions.

The CNG station on Airport Road, Abuja, includes a 5-bay CNG Vehicle Conversion Workshop, capable of converting 5 to 6 vehicles daily.

Together, the Abuja and Lagos stations have a combined dispensing capacity of over six million standard cubic feet (MMSCF) of CNG per day, serving approximately 15,000 vehicles daily. This ensures continuous, reliable, affordable and safe CNG supplies to motorists across various regions.