FG commissions 5.2 mmscfd CNG plant in Lagos to mitigate subsidy removal impact

Photo shows Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, assisted by the Lagos State Governor, Babajide Sanwo-Olu, unveils a plaque to officially commission the 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) Facility in Ilasamaja area of Lagos State, on Thursday. 

In a bid to reduce the effects of subsidy removal on petrol and provide a viable alternative fuel source for Nigerians, the Federal Government has commissioned a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos. 

The plant, located at the Isolo Industrial Area, Ilasamaja, was officially inaugurated by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, on Thursday, May 30, 2024.

The event, themed "From Gas to Prosperity: CNG for All," marks a significant milestone in the development of affordable, sustainable, and secure energy sources in Nigeria. 

The CNG plant is expected to contribute to the country's energy security and alleviate the burden of subsidy removal on petrol. 

Furthermore, the Nigerian National Petroleum Corporation (NNPC) has announced plans to roll out six additional CNG stations across the country, further expanding the availability of this alternative fuel source. This move is part of the government's efforts to diversify the energy mix and reduce reliance on imported fuels.
Photo shows L-R: Managing Director, NNPC Gas Marketing Limited, HRM Justin Ezeala; representative of the Ogun State Governor and State Commissioner of Environment, Mr. Ola Oresanya; Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Lagos State Governor, Babajide Sanwo-Olu; GCEO NNPC Ltd, Mallam Mele Kyari; Executive Vice President, Gas Power & New Energy, NNPC Ltd, Mr. Olalekan Ogunleye; Executive Vice President Upstream, NNPC Ltd, Mrs. Oritsemeyiwa Eyesan and a guest during the commissioning of 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Ilasamaja area of Lagos State, on Thursday.

The commissioning of the CNG plant and the planned expansion of CNG stations nationwide are significant steps towards achieving the government's goal of providing a more sustainable and affordable energy future for Nigerians. 

In a press statement signed by Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, the Minister 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 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% less CO2 than comparable gasoline powered passenger vehicles, the Minister added.

Earlier in his remarks, the GCEO NNPC Limited, Mallam Mele Kyari, said to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC 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 six geopolitical zones, including the FCT to ease access to bulk CNG. 

He stated that 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.

In particular, Kyari revealed that the commissioning of the NNPC CNG Station in Ilasamaja Lagos was part of NNPC’s efforts to grow domestic gas supply and utilization by deploying gas infrastructure nationwide.

He said the Petroleum Industry Act (PIA) explicitly mandated NNPC 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 stated.

In his speech, the Lagos State Governor, Babajide Sanwo-Olu said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation and industrialisation in the State.

He said in demonstration of its resolve to champion CNG utilisation across Lagos State, the State Government has concluded plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will commence operations before the end of the year.

The Ogun State Governor, Dapo Abiodun, represented by the State Commissioner of Environment, Mr. Ola Oresanya said the State is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the State and beyond. 

In his goodwill message, the Chief Executive, Presidential CNG Initiative, Engineer Michael Oluwagbemi described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians. 

The CEO of Axxela, Bolaji Osunsanya thanked all the stakeholders, especially the NNPC for its consistent vision towards the delivery of the plant, stressing that his company’s many years of preparation have now met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.

The NNPC CNG Station Ilasamaja, according to the statement, is a 5.2MMscf per day capacity station that can serve vehicles and also supply gas to industries and other companies. The Facility has dispensing points for filling cars, buses, trucks and tricycles, utilizing CNG and can fill about 3,700 cars or 600 trucks/buses every day thereby providing a constant supply of CNG.
The state-of- the art CNG plant was built through a partnership between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (An Axxela Company).

Share on Google Plus

About Newsmart


Post a Comment