NNPC, NIPCO Partner to Deliver CNG as Alternative Fuel Nationwide

“The recent strategic partnership between NNPC Ltd. and NIPCO Gas Ltd. to deploy Compressed Natural Gas Stations across the country is another excellent example. This landmark collaboration will expand Nigeria’s Compressed Natural Gas infrastructure, improve access to CNG and accelerate the adoption of a cheaper and cleaner alternative fuel for buses, cars and Keke Napep.”

By His Excellency President, Bola Tinubu, Source: NNPC Limited

In alignment with the directives from His Excellency President Bola Tinubu to provide alternative fuel options to the citizens of Nigeria subsequent to the removal of subsidy on Premium Motor Spirit, the Nigerian National Petroleum Company Limited (NNPCL) has entered into a partnership with NIPCO Gas Limited. The aim of this collaboration is to establish Compressed Natural Gas (CNG) stations across Nigeria.

Mallam Mele Kyari, the Group Chief Executive Officer of NNPC Limited, unveiled this development during a press conference held on August 3, 2023, in Abuja. The event was attended by Nagendra Verma, the Managing Director of NIPCO Gas, Engr. Adokiye Tombomieye, the NNPC Executive Vice President, Upstream, and other highranking officials of NNPCL.

This initiative is in line with NNPCL’s commitment to providing an economical alternative fuel option for drivers and decreasing carbon emissions. Additionally, this undertaking complements NNPCL Retail’s ongoing plan to establish 56 CNG stations in a phased manner across the country.

This significant collaboration has the objective of expanding the CNG infrastructure nationwide, enhancing accessibility to CNG, and expediting the adoption of a more affordable and cleaner alternative fuel for buses, cars, and Keke Napep. The increased adoption of CNG is expected to make a significant impact on the fuel expenses of commuters since CNG is economical as compared to other automotive fuels.

This partnership is anticipated to reduce the need for fuel importation and substantially leverage domestically produced natural gas, thereby reducing transportation costs and fostering sustainable economic growth at a national level. The NNPC-NIPCO strategic partnership is slated to construct 35 state-of-the-art CNG stations nationwide, including three Mother stations. Once fully operational, these stations will have the capacity to serve over 200,000 vehicles on a daily basis.

The project will be implemented in stages. The initial phase, which comprises 21 CNG stations, will cater to intra-city transportation and is projected to be operational by the first quarter of 2024. The subsequent phase, involving 35 CNG stations, will support inter-city transportation and is anticipated to be operational by the first quarter of 2025.

NIPCO Gas Limited, currently managing over 14 CNG stations across Nigeria and having converted more than 7,000 vehicles to utilize CNG, brings valuable technical expertise and field experience to enhance the success of this initiative and magnify its positive impact on the national economy.

This forward-looking endeavour will leverage Nigeria’s abundant natural gas resources to deliver several advantages to Nigerians, encompassing access to more affordable fuel, reduced transportation costs, reduce carbon emissions, the creation of fresh business value chains, and the emergence of new job opportunities.

At the said event, Nagendra Verma, the Managing Director of NIPCO Gas, affirmed the company’s dedication to collaborating with NNPCL in deepening the natural gas market.

NIPCO Gas has the expertise to deliver on the project and expressed optimism that with the support of the NNPCL, the project would be delivered on schedule.