As part of efforts to provide an alternative source of fuel for Nigerians and lessen the impact of subsidy removal on petrol, the Federal Government has commissioned a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos State.
Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, who commissioned the plant at Isolo Industrial Area in Ilasamaja, Lagos, on Thursday, May 30, 2024, said the occasion, under the theme “From Gas to Prosperity: CNG for All”, represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.
The minister described 2024 as a historic year for Nigerians, stressing that through his decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.
“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” Ekpo stated.
Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions.
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“While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10 per cent less CO2 than comparable gasoline-powered passenger vehicles, the minister added.
Also speaking at the event, NNPCL GCEO Mele Kyari said to maintain energy security and provide more access to CNG by the Nigerian populace, the NNPCL has reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service stations plants and stations of 5.2mmscfd capacity each, in selected locations spread across the country to ease access to bulk CNG.
Kyari said the move was in addition to NNPC Retail’s phased deployment of CNG in over 100 stations across the country as well as other Joint Venture partnerships on CNG.
He added that the commissioning of the NNPC CNG Station in Ilasamaja Lagos was part of NNPCL’s efforts to grow domestic gas supply and utilisation by deploying gas infrastructure nationwide.
Kyari said the Petroleum Industry Act (PIA) mandated NNPCL to promote domestic gas utilisation, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.
On his part, the Lagos State Governor Babajide Sanwo-Olu said the establishment of the CNG plant aligns with his vision for economic development, job creation, and industrialisation in Lagos State.
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