The Federal Government has inaugurated a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos, aimed at offering alternative fuel sources and mitigating the effects of petrol subsidy removal. This initiative was announced by the spokesperson of the Nigeria National Petroleum Corporation Limited (NNPCL), Olufemi Soneye, on Thursday in Abuja.
The inauguration ceremony, themed “From Gas to Prosperity: CNG for All,” took place in the Isolo Industrial Area, Ilasamaja, Lagos. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, highlighted the significance of this event, emphasizing that it represents a pivotal moment in advancing affordable, sustainable, and secure energy sources in Nigeria.
Ekpo noted that the removal of the Premium Motor Spirit (PMS) subsidy, while challenging, presents a unique opportunity to innovate and adopt more economical, efficient, and sustainable energy alternatives. He pointed out that CNG, as a transport fuel, is a mature technology globally recognized for its environmental benefits, including being the cleanest burning fuel in terms of nitrogen oxide and soot emissions. CNG-powered passenger vehicles emit 5-10% less CO2 than their gasoline-powered counterparts.
The NNPCL plans to introduce six new CNG plants across Nigeria to alleviate energy costs associated with the subsidy removal. The Group Chief Executive Officer (GCEO) of NNPC Limited, Mallam Mele Kyari, announced that an investment decision has been finalized with Axxela Limited to establish these plants. Each plant will have a capacity of 5.2 mmscfd and will be strategically located across the six geopolitical zones, including the Federal Capital Territory (FCT), to facilitate easier access to bulk CNG.
Kyari explained that this initiative complements NNPCL retail’s gradual introduction of CNG in over 100 stations nationwide, in addition to other Joint Venture collaborations focusing on CNG. The Petroleum Industry Act (PIA) mandates NNPCL to promote domestic gas utilization, reinforcing the company’s commitment to deploying critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilize our gas resources for industrialization, power generation, and economic prosperity for all,” Kyari added.
The inauguration of the CNG plant in Lagos marks a significant step in Nigeria’s efforts to diversify its energy sources and enhance the sustainability of its energy sector, aligning with global trends towards cleaner energy solutions.
