In a move to provide Nigerians with cheaper and cleaner alternative fuel options, the Nigerian National Petroleum Company Limited (NNPC) has announced a strategic partnership with Nipco Gas Limited for the delivery of Compressed Natural Gas (CNG) stations across the country. The news was revealed in a press statement on Thursday, August 3, via NNPC’s official Twitter handle.
The partnership comes shortly after President Tinubu’s recent announcement to empower states and local government areas with CNG-powered buses, signaling a concerted effort by the government to promote the adoption of CNG as a viable transportation fuel.
Garba Deen Muhammad, the Chief Corporate Communications Officer at NNPC, signed the press statement outlining the objectives of the collaboration. He emphasized that the partnership aimed to expand CNG infrastructure, improve access to CNG, and accelerate the adoption of this cheaper and cleaner fuel alternative for buses, cars, and Keke NAPEP (tricycle taxis). The initiative is expected to significantly reduce transportation costs and contribute to sustainable economic growth.
The joint venture will see the construction of 35 state-of-the-art CNG stations across Nigeria, including three Mother stations. Once operational, these stations will have the capacity to service over 200,000 vehicles daily, bringing about a considerable reduction in automobile fuel expenses for Nigerians and lowering the overall cost of transportation.
The project will be executed in two phases. The first phase will consist of 21 CNG stations, primarily dedicated to intra-city transportation, with an anticipated completion date in the first quarter of 2024. The second phase, comprising 35 CNG stations, will focus on inter-city transportation and is scheduled to be ready by late 2024. NNPC Retail will complement these efforts by deploying an additional 56 CNG stations nationwide.
Nipco Gas Limited, a company that already operates 14 CNG stations in Nigeria and has successfully converted over 7,000 vehicles to run on CNG, will lend its technical expertise and field experience to bolster the success of the initiative. This partnership is expected to have a positive impact on the nation’s economy, leveraging Nigeria’s abundant natural gas resources to create multiple benefits, including access to cheaper fuel, reduced carbon emissions, and the generation of new business value chains and job opportunities.
NNPC Limited expressed its desire to encourage further private sector participation by inviting oil marketing companies to contribute to expanding CNG penetration and availability throughout the country. The company remains steadfast in its commitment to delivering reliable energy while continually contributing to Nigeria’s prosperous future alongside its partners.
With this bold step towards promoting CNG as an alternative fuel, Nigeria is poised to witness a transformation in the transportation sector, leading to a more sustainable and environmentally friendly future. As the partnership moves forward, citizens can look forward to a cleaner and more cost-effective transportation system, aligning the nation with global efforts to reduce greenhouse gas emissions and combat climate change.