Infrastructure Fund Plans 500 Compressed Natural Gas Stations In 3 years

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has concluded discussions with the leading Chinese manufacturer, Endurance Group, to make 500 compressed natural gas (CNG) refuelling stations available across Nigeria over the next three years.

Briefing the press after the meeting in Abuja, the executive director of the MDGIF, Oluwole Adama, said the discussion centred on the creation of a government-backed Special Purpose Vehicle (SPV) promoted by MDGIF, BOI, Endurance Group, and Séquor Investment Partners.

“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.

“Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide,” Adama stated.

Adama further noted that the project will help ease the long queues currently being experienced at existing CNG filling stations by expanding access to refuelling points and ensuring consistent supply through improved logistics and distribution systems.

Similarly, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, stated that the project aligns with President Bola Tinubu’s vision of ensuring energy security by increasing the use of auto CNG and reducing overdependence on PMS and AGO, particularly in the transportation sector.

He added that the initiative supports the administration’s broader economic reforms aimed at promoting cleaner, more affordable energy alternatives for Nigerians and creating new employment opportunities within the domestic gas value chain.

Additionally, Eric Lin, CEO of Endurance Group, explained that the objective of the SPV is to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG-related equipment to certified operators, while ensuring a consistent and reliable gas supply through a world-class virtual pipeline network.

CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network. The approach focuses on delivering CNG from strategically located mother stations into underserved northern corridors and rapidly growing southern clusters, leveraging existing hubs and planned infrastructure to ensure sustainable and cost-effective market expansion nationwide.