The Nigerian National Petroleum Company Limited (NNPC) has unveiled plans to establish 12 new Compressed Natural Gas (CNG) and mini-Liquefied Petroleum Gas (LPG) fueling stations across the country. This initiative, part of a broader national effort to provide alternative fuel options following the removal of fuel subsidies, is aimed at making energy more accessible and affordable for Nigerians.
NNPC’s Group CEO, Mele Kyari, made the announcement during the 42nd Annual Conference of the Nigeria Association of Petroleum Explorationists (NAPE) held in Lagos. Kyari emphasized NNPC’s commitment to addressing Nigeria’s energy challenges and driving the adoption of cleaner, more sustainable energy sources, such as CNG and LPG.
“We are prioritizing the expansion of our gas infrastructure to ensure energy security, economic growth, and affordability,” Kyari stated. He highlighted that these projects align with NNPC’s long-term vision for Nigeria’s energy landscape, as the company seeks to balance energy accessibility with environmental sustainability.
The upcoming fueling stations are expected to contribute to NNPC’s existing supply of 1.6 billion standard cubic feet of gas in the domestic market, bolstering the nation’s gas infrastructure. The company is also advancing several key projects, including the Obiafu-Obrikom-Oben (OB3) gas pipeline, to enhance the availability of alternative fuels and reduce Nigeria’s dependence on imported petrol.
To further support its objectives, NNPC is exploring partnerships with private refineries and has introduced a naira-for-crude trade model, designed to reduce reliance on foreign exchange and stabilize the naira. The company’s strategic shift towards CNG and LPG is expected to diversify Nigeria’s energy options and contribute to price stability.
President Bola Tinubu has recently inaugurated CNG as a government-supported alternative to petrol, setting the price at N230 per kilogram. This move, along with the Presidential Initiative on CNG (Pi-CNG), is expected to promote greater access to affordable fuel options for Nigerian households and businesses.
In recent months, fluctuations in the landing cost of imported petrol have also influenced fuel prices in Nigeria. Although importation costs have dropped by approximately 20% in the past three months, retail prices for petrol have remained high, climbing from N617 per litre in August to over N1,060 per litre in early November. By increasing CNG and LPG availability, the government hopes to alleviate pressure on petrol prices and offer more economical fuel alternatives.
The new fueling stations are projected to be operational within the next three to six months, marking a significant milestone in Nigeria’s transition to alternative energy sources. Through these efforts, NNPC aims to support cleaner fuel consumption, ease inflationary pressures on fuel prices, and enhance Nigeria’s energy security..
