CNG will reduce petrol imports by $4.4bn–FG
CHIGOZIE AMADI
Nigeria is going to reduce the importation of Premium Motor Spirit, popularly called petrol, by about $4.4bn annually by adopting the use of Compressed Natural Gas, the Federal Government announced on Tuesday.
It announced this through the Presidential Compressed Natural Gas Initiative, adding that the target of government was to convert one million diesel and petrol-powered vehicles to start running on CNG.
This, according to the Coordinator, Regulations, Compliance and Facilitation, PCNGI, Zayyan Tambari , would save the country about $4.4bn annually on the importation of PMS into Nigeria.
Tambari disclosed this in a presentation at the Co-Creation Session on Nigeria Gas Vehicle Monitoring System in Abuja, as he also revealed that the target of the Federal Government was to replace 20 per cent of the current 50 million litres of petrol consumed daily across the country with CNG.
Recall that on Thursday, The PUNCH reported that the Federal Government had commenced the roll out of CNG-powered buses and tricycles.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, had told our correspondent that the Federal Government kicked-started the deployment in Ilorin, Kwara State.
“There was a launch in Ilorin Kwara State by Governor Abdulrahman Abdulrazak. Ilorin launch was a refueling and conversion centre. CNG buses and tricycles were also unveiled. The CNG vehicle assemblers have begun the roll out, beginning from Ilorin.
“The inauguration started with a conversion centre before they unveiled some CNG buses and tricycles. They have not given a date for Abuja. But the process started today,” Onanuga had explained.
Meanwhile at the co-creation session in Abuja on Tuesday, the PCNGI stated that about $890m investment would be required to develop infrastructure for the alternative fuel.
Also at the event, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who was represented by Abel Nsa, said the government would ensure that Nigeria reaps the full benefits of its gas resources.
“We are at the point where we need to begin to talk about the safety issues in the use of CNG. We have got to educate ourselves and we have got to use specific tools and materials hitherto that we have not been using.
“Recall what happened in 2009-2001 with the emergence of the cell phone during (former) President Olusegun Obasanjo’s regime, from an economic perspective, a lot is going to happen. It is going to give us a lot of tools on how to utilise CNG,” he stated.
The Executive Director, Distribution System, Storage and Retailing Infrastructure, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Ogbugo Ukoha, said new filling stations would only get licences when they able to provide points for the dispensing of CNG.
“The authority is also engaging the stakeholders that would result in mandating fuel trucks and fleet owners and also facilities to convert to the use of CNG given the high cost of diesel,” he stated.
The Project Director/Chief Executive, PCNGi, Michael Oluwagbemi, said gas is cheaper, cleaner, safer and more sustainable for the economy, adding that Nigeria has abundant gas resources than crude oil.
“In doing this transition, we need to make sure that the transition is smooth and ensure that any bad actors are identified and fished out, and that we all comply with the necessary basic technical regulations.
“In achieving this, we need the cooperation of all members of the ecosystem right from the point of inspection or conversion to the point of use, right from the point of manufacturing or importation of any part to the point of installation, there is a need that we have a very strong regulatory regime,” the PCNGI boss stated.
Oluwagbemi had told our correspondent on Thursday that a nationwide CNG conversion programme for mass transit buses had commenced.
“The PCNGI is thrilled to announce the commencement of the Nationwide Mass Transit Conversion Programme. This ambitious initiative aims to convert mass transit vehicles to cleaner energy sources, significantly reducing emissions and promoting environmental sustainability.
“The initial phase of the conversion programme will be initiated in Lagos, Kwara, the Federal Capital Territory, and Rivers states. This phase will be executed in partnership with major transport unions, including the National Union of Road Transport Workers, Road Transport Employers’ Association of Nigeria, and Nigerian Association of Road Transport Owners.
“To ensure the success of this programme, the rollout will commence in eight of over 120 designated conversion workshop sites. These key union partners will have the opportunity to observe and evaluate the conversion process, providing valuable feedback as we plan to scale up operations across 15 states over the next 45 days,” he stated.
