FG Launches CNG Plant in Lagos to Cushion Subsidy Removal Effects


In a bid to provide alternative fuel sources and mitigate the impact of subsidy removal on petrol, the Federal Government has commissioned a 5.2 million standard cubic feet per day Compressed Natural Gas (CNG) plant in Lagos. The plant, located in Isolo Industrial Area, Ilasamaja, was launched by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, on Thursday.

According to the Minister, the year 2024 marks a significant turning point for Nigerians, thanks to President Bola Tinubu’s courageous decision to eliminate fuel subsidies and promote the use of LPG. While the move has brought initial difficulties, it has also presented fresh beginnings for Nigerians.

CNG is a mature technology used globally, emitting 5-10% less CO2 than comparable gasoline-powered passenger vehicles. The Minister highlighted its potential to power passenger cars and city buses, making it a cleaner and more sustainable energy alternative.

To further expand access to CNG, NNPC Limited has reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service stations across the country. This is in addition to phased deployment in over 100 stations and joint venture partnerships.

The Lagos State Government has also announced plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, while Ogun State is supporting capacity building in CNG conversion.

The newly commissioned NNPC CNG Station Ilasamaja has a 5.2MMscf per day capacity, serving vehicles and supplying gas to industries. With its state-of-the-art facilities, it can fill about 3,700 cars or 600 trucks/buses daily, providing a constant CNG supply.

This milestone is a result of a partnership between NNPC Gas Marketing Limited and Transit Gas Nigeria Limited (an Axxela Company). As the country continues to explore sustainable energy solutions, this CNG plant launch marks a significant step towards a cleaner and more prosperous future.

 

LV


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