Nigeria’s Refuelling Outlets Rise To 56 Amid $400m Investment In CNG

The federal government has sustained investment growth in the Compressed Natural Gas (CNG) sector to boost domestic utilisation of the product as a viable alternative to fossil fuel.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it has supported the Presidential CNG Initiative (PCNGI) which over the last year, helped stimulate 186 new conversion centers increasing Nigeria’s conversion capacity by over 2500 per cent.

These conversions alongside new buys have raised Nigeria Nigerian Gas Vehicles NGV population to an estimated 30-50,000 vehicles and trucks and it continues to grow daily.

The Authority chief executive, Farouk Ahmed, in his address during the Petroleum Industry Stakeholders Forum (PISF), revealed that, with over $400 million attracted for investment in 86 and 65 new daughters & mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56.

Farouk noted that, the collaborative efforts of PCNGI NMDPRA and the Standards Organization of Nigeria (SON) has led to the development of standards and the Nigeria Gas Vehicle Monitoring System to ensure safety which is already in pilot phase, expected to be launched in 2025.

To address the observed deficit in critical energy projects financing, he said, the NMDPRA is supporting the establishment of the Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent.

The programme, he said, supports gas supply and development of infrastructure projects, adding that, in line with the Petroleum Industry Act (PIA) provisions, the NMDPRA has implemented a gas pricing regime that supports the growth of gas supply, infrastructure and utilisation projects.

The NMDPRA has also enshrined transparency and accountability in its regulatory activities; we have progressively automated our processes to enhance efficiency.

The Authority has enacted 20 regulations to give effect to PIA provisions, he said stating “We have reviewed the Gas Transportation Network Code for improved access to natural gas and operationalised the MDGIF as a catalyst for gas infrastructure development and investments.

“We have also upscaled our processes for Issuance of Licences, Permits and Authorisations for the establishment and operations of new refineries, gas plants, pipelines and other hydrocarbon handling facilities.”

In addition, the Agency will continue to collaborate with PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions while collaborating with states to develop NGVs in other areas.