Lagos, May 31, 2024 – The Federal Government has inaugurated a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in the Isolo Industrial Area in Lagos.
It is a partnership arrangement between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (An Axxela Company).
The facility is a 5.2MMscf per day capacity station that can serve about 3,700 cars or 600 trucks/buses daily.
Speaking at the inauguration ceremony ob Thursday, Mallam Mele Kyari, the Group Chief Executive of NNPC Limited, said the inauguration of the plant was part of NNPC’s efforts to grow domestic gas supply and utilisation by deploying gas infrastructure nationwide.
He said it was in the bid to maintain energy security and provide more access to CNG by the Nigerian populace that the NNPC reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service stations plants and stations of 5.2 mmscfd capacity each, in selected locations spread across the six geopolitical zones including the FCT to ease access to bulk CNG.
Kyari said the Petroleum Industry Act (PIA) 2021 mandated NNPCL to promote domestic gas utilisation, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilise our gas resources for industrialisation, power generation and economic prosperity for all,” Kyari said.
Ekperikpo Ekpo, the Minister of State for Petroleum Resources (Gas), said the occasion represented a critical turning point in the development of affordable, sustainable and secure energy sources in the country.
He described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of Liquefied Petroleum Gas (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,” the Minister 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.
“While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10 per cent less carbon dioxide (CO2) than comparable gasoline powered passenger vehicles,” the minister said.
