CNG 40% cheaper than petrol, 100 stations coming – NNPC
The use of Compressed Natural Gas in automobiles is 40 per cent cheaper than using Premium Motor Spirit, popularly called petrol, the Nigerian National Petroleum Company Limited announced on Thursday.
NNPC also announced that 100 CNG stations would be functional nationwide in 12 months, as it simultaneously inaugurated 11 CNG stations across various locations in Abuja and Lagos on Thursday.
Speaking at one of the locations in Abuja, the Managing Director, NNPC Retail Limited, Huub Stokman, said the stations represent a major step in extending the national oil firm’s CNG presence in Nigeria, marking an important moment in its efforts to diversify Nigeria’s energy mix.
“Adding CNG to NNPC stations provides Nigeria with an affordable alternative to existing fuel products. CNG will be about 40 per cent cheaper than petrol in Nigeria. And with continued investments, it could become a significant part of our energy mix,” stated.
On the expansion of the stations, Stokman said, “In the next 12 months, NNPC Retail will have launched over 100 CNG sites.”
He said NNPC was “also supporting our implementation partners to set up two mechanical training centres combined with conversion centres in Abuja and Lagos.
“And it is fantastic that Nigeria is utilising its own natural resources to bring affordable energy to the people of Nigeria, and NNPC Retail is very proud to be part of this journey.” Nigeria has abundant gas reserves of about 209 trillion standard cubic feet.
The Group Chief Executive Officer, NNPC, Mele Kyari, said the company and its partners were developing infrastructures to further bring CNG closer to end users.
Kyari said, “I can see the benefits, people are saying that it works for them, it is cheaper and cleaner fuel and it is accessible. What we are going to do is to roll it out across all the states of the federation and it is already a work in progress.
“We will construct six CNG mother stations across the country between now and December and you will see this happen. We are also taking another step, we are building three LNG (Liquefied Natural Gas) stations in Ajaokuta, one of them belongs to us and the two others are done in partnerships.
“What this does is to bring gas closer to consumers because distance matters in transporting gas, which is why we are doing this so that it becomes accessible and easier. And this is for the short term because as soon as we complete the AKK pipeline it gets much closer to end users and ultimately as you reduce the distance, the cost will come down and you see cheaper fuel across the country.”
The Executive Vice President, Cleanergy Innovation Ltd, partners of NNPC in the design and installation of the CNG stations, Shettima Imam, said the retail outlets represent a significant step forward in Nigeria’s journey towards affordable, sustainable, locally sourced and environmentally friendly fuel solutions.
“These CNG filling stations show the commitment to diversify Nigeria’s energy offerings and promote Mr President’s CNG initiative. These new facilities are designed to ensure safe, reliable, and efficient service to all customers, aligning with global best practices.
“The CIL team’s expertise and dedication with the full support of the NNPC Retail team and its senior management, after meticulous planning and safeguards, have ensured the successful completion and delivery of this first step of the project, in a record time from the arrival of the equipment in Nigeria.
“Thus setting a new benchmark for CNG infrastructure in the region. These CNG stations are a testament to what can be achieved through collaboration and innovation,” Imam stated.
It was further explained at the event that the government had been subsidising the petrol consumption of an average car owner by about N6m to N9m per annum. But with the deployment and use of CNG, an average car owner would save about N12m annually.
