In a significant development, the Nigerian National Petroleum Company Limited (NNPC) has announced a shift towards Compressed Natural Gas (CNG) as a cheaper and more sustainable alternative to Premium Motor Spirit (PMS), commonly known as petrol. According to NNPC, using CNG in automobiles offers a 40% cost reduction compared to petrol.
To bolster the adoption of CNG, NNPC plans to establish 100 CNG stations across the country within the next 12 months. This announcement comes with the inauguration of 11 new CNG stations in strategic locations in Abuja and Lagos. The Managing Director of NNPC Retail Limited, Huub Stokman, emphasized the significance of these new CNG stations, stating that they provide Nigeria with an affordable alternative to existing fuel products.
Nigeria has abundant gas reserves, with approximately 209 trillion standard cubic feet. The Group Chief Executive Officer of NNPC, Mele Kyari, highlighted the company’s efforts to develop infrastructures that bring CNG closer to end-users. Kyari mentioned that they will construct six CNG mother stations across the country between now and December and build three LNG stations in Ajaokuta.
The adoption of CNG is expected to save car owners a significant amount of money. Currently, the government subsidizes petrol consumption by about N6m to N9m per annum for an average car owner. However, with the deployment and use of CNG, an average car owner would save around N12m annually.
This development aligns with the goal of stopping fuel importation in 2024, as announced by Mele Kyari. The use of CNG is not only cheaper but also cleaner and more environmentally friendly. The successful completion of this project sets a new benchmark for CNG infrastructure in the region, showcasing what can be achieved through collaboration and innovation.
