Subsidy: NNPC, NIPCO partner to deliver CNG to Nigerians

The Nigerian National Petroleum Company (NNPC) Limited has announced a strategic partnership with NIPCO Gas Limited to deploy Compressed Natural Gas (CNG) stations across the country.

NNPC Chief Corporate Communications Officer, Garba Deen Muhammad said the movement was part of the plan to provide a cheaper alternative fuel to motorists.

According to NNPC, the collaboration aims to expand CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars, and Keke NAPEP, which will significantly reduce the cost of transportation and engender sustainable national economic growth.

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“Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three (3) Mother stations.

“Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation.”

NNPC further stated that the project will be rolled out in phases, with the first phase comprising 21 CNG stations which will support intra-city transportation and be ready by the first quarter of 2024. 

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The second phase, comprising 35 CNG stations, will support inter-city transportation and will be ready by late 2024 and will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country.

NIPCO Gas Limited is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG. NIPCO’s technical competency and field experience will bolster this initiative’s success and amplify its positive impact on the Nation’s economy.

“This initiative will leverage Nigeria’s abundant natural gas resources to bring multiple benefits to Nigerians, including access to cheaper fuel, reduced cost of transportation, reduced carbon emissions, create new business value chains and streams of job opportunities,” NNPC added. 

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NNPC Limited expects further private sector participation by oil marketing companies to broaden CNG penetration and availability.

“NNPC Limited remains committed to reliably delivering energy while continuously creating value for Nigeria’s prosperous future alongside our partners.”