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. On Thursday, NNPC revealed that using CNG in automobiles can reduce costs by 40 percent compared to petrol.
To promote the adoption of CNG, NNPC plans to establish 100 CNG stations nationwide within the next 12 months. The announcement coincided with the inauguration of 11 new CNG stations in Abuja and Lagos.
Huub Stokman, Managing Director of NNPC Retail Limited, highlighted the significance of these stations in diversifying Nigeria’s energy options. He stated, “Adding CNG to NNPC stations provides Nigeria with an affordable alternative to existing fuel products. CNG will be about 40 percent cheaper than petrol in Nigeria. With continued investments, it could become a significant part of our energy mix.”
Stokman also mentioned that NNPC Retail will launch over 100 CNG sites in the next 12 months and support implementation partners to set up mechanical training and conversion centers in Abuja and Lagos. He emphasized Nigeria’s utilization of its natural gas resources to provide affordable energy.
Nigeria has significant gas reserves of about 209 trillion standard cubic feet. Mele Kyari, Group Chief Executive Officer of NNPC, stated that the company and its partners are developing infrastructure to make CNG more accessible. Kyari noted, “People are saying that it works for them, it is cheaper and cleaner fuel and it is accessible. We will roll it out across all states of the federation, and this is already a work in progress. We will construct six CNG mother stations across the country between now and December.”
He added that NNPC is building three Liquefied Natural Gas (LNG) stations in Ajaokuta, with one owned by NNPC and two in partnership. This infrastructure aims to bring gas closer to consumers, reducing transportation costs and ultimately providing cheaper fuel.
Shettima Imam, Executive Vice President of Cleanergy Innovation Ltd, a partner in the design and installation of CNG stations, described the retail outlets as a significant step towards affordable, sustainable, locally sourced, and environmentally friendly fuel solutions. Imam stated, “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.”
At the event, it was explained that the government had been subsidizing petrol consumption for an average car owner by about N6m to N9m per annum. However, with the deployment and use of CNG, an average car owner would save about N12m annually.