NIPCO Gas Limited has unfolded a plan to establish about 35 Auto-Compressed Natural Gas (AutoCNG) plants 19 locations across the country.
The Managing Director of NIPCO Gas Ltd, Nagendra Verma, who disclosed this in an update presented in Lagos on the company’s AutoCNG development and expansion project said the project was being executed in partnership with the Nigerian National Petroleum Company Limited (NNPC Ltd).
NIPCO Gas Ltd, which commenced the nationwide AutoCNG development and expansion programme since 2009 with the initial construction of the Benin City CNG plant, has since expanded its AutoCNG network to Ibafo Industrial area in Ogun State and later in Kogi State.
The MD disclosed that with clear mandate given to the company by the current government, AutoCNG network has further been expanded to the Federal Capital Territory (FCT), Abuja, Ibadan in Oyo State and Oron in Akwa Ibom State.
He said NIPCO Gas Ltd presently operates 15 AutoCNG stations across the country, with motor vehicle owners provided the fuel to operate CNG vehicles between Lagos, Abuja and Kaduna by taking CNG from NIPCO Gas AutoCNG stations along the routes.
“We are sure motorists will be able to travel across every nook and cranny of Nigeria with AutoCNG,” Verma said.
“Under the current government’s directives, NIPCO Gas Ltd has partnered with the NNPC for the expansion of AutoCNG stations across various states of Nigeria. Partnering with the NNPC under directives from The Presidency brings along huge sense of responsibility and commitment towards the masses of Nigeria and the government government,” the MD said.
He said NIPCO Gas was honored with this trust and belief reposed in it by the Federal Government and the NNPC and have assured that the company would not leave any stone unturned to make the AutoCNG expansion plan a reality to relieve thousands and millions of citizens from the pain they are going through presently.
Under the current partnership with the NNPC on the AutoCNG development and expansion plan, the MD said19 locations have been identified for the construction of AutoCNG stations across the country.
The construction of the stations which would be carried in phases, he said, has already received stage-wise approvals from the relevant statutory regulatory authorities, including the Nigerian Midstream-Downstream Petroleum Regulatory Authority (NMDPRA).
The construction of the CNG stations in Lagos, which are part of the first phase of the project, are scheduled to be completed in April/May, 2024, the MD announced.
“For making this AutoCNG expansion project a reality, we commend the managements of the NNPCL, Standard Organisation of Nigeria (SON), NMDPR, Presidential CNG Initiative (PCNGI) and other Ministries, Departments and Agencies, including the media for the due support and guidance we are getting to see this as a reality in the near future,” the MD said.
Although gas distribution and AutoCNG projects are highly capital-intensive projects requiring huge investments and the highest level of commitment and perseverance, he expressed confidence that with the support from the government and all stakeholders, including the Presidency, NIPCO Gas, would continuously push towards making the plan happen.
Apart from the development and expansion of AutoCNG stations, he said NIPCO Gas was also expanding its gas transportation pipeline towards Ibadan and gas distribution network in the Lekki Free Zone.
All these projects, he pointed out, require huge investments and a high gestation period.
“Once the above projects are commissioned, it will help in a greater way in deepening the utilization of domestic gas in the country, which still remains under-utilized, while reducing dependency on importation of other fossil fuels, thereby reducing the pressure on foreign exchange,” he said.
Presently, he said cars, taxis and commercial tricycles, popularly called Keke, are buying AutoCNG at N200 per standard cubic metres (SCM), compared with the retail price of premium motor spirit (PMS) currently at about N610 per litre in Lagos, while their counterparts in Abuja are buying the product at N230 per SCM against the PMS price of N670 per litre.
Similarly, for heavy duty commercial vehicles, the MD said AutoCNG is being sold at N260 per SCM, against the auto gas oil (AGO) or diesel price of N1250 per litre in Lagos, while those in Abuja are getting the product at about N290 per SCM, against the AGO price of N1,300 per litre.
“NIPCO Gas Ltd. is sure that with the continuous focus and push by the current government, AutoCNG will become the choice fuel for Nigeria, which has the potential to reduce the pressure on importation of petroleum product as well as on FOREX.
“AutoCNG is a project for the masses and of National Cause and Importance. We are sure once expanded across Nigeria, we will surely and definitely relieve the masses and motorists from high fuel cost. We continuously seek blessing and support of the government and media to make AutoCNG a pain reliever, cleaner and greener fuel for Nigeria,” he said.
