The Nigeria National Petroleum Company (NNPC) Limited has announced plans to establish 100 Compressed Natural Gas (CNG) stations nationwide. This was revealed by Huub Stokman, Managing Director of NNPC Retail Limited, during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos on Thursday.
Stokman highlighted that within the next year, NNPC Retail aims to launch over 100 CNG sites, including 16 sites in collaboration with NNPC Gas Marketing and NIPCO Gas. He emphasized the cost-effectiveness of CNG, noting that it is approximately 40% cheaper than traditional petroleum products.
“CNG offers Nigeria an affordable alternative to existing fuel products. It will be about 40% cheaper than petrol, and with continued investments, it will become a significant part of our energy mix,” Stokman stated, as quoted by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye.
Additionally, NNPCL’s Group Chief Executive Officer, Mele Kyari, announced plans to build three Liquefied Natural Gas (LNG) stations in Ajaokuta, Kogi State.
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Kyari stressed the importance of delivering CNG to all Nigerians, acknowledging that while the initiative may be overdue, efforts will be made to ensure that the volatility associated with Premium Motor Spirit (petrol) does not affect gas.
“There is simply no turning back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress and cover the gap to ensure stability,” Kyari said.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also spoke at the event, highlighting the economic benefits of the new CNG stations, including job creation and overall economic progress for the nation.
This development follows the government’s decision to end the fuel subsidy regime over a year ago, as declared by President Bola Tinubu’s administration.
The termination of the subsidy led to a significant increase in petrol prices, prompting the government to explore alternative energy sources to mitigate the impact on the masses. The establishment of CNG stations represents a significant step towards diversifying Nigeria’s energy portfolio and providing more affordable fuel options to its citizens.