NIPCO secures gas distribution licences, converts 15,000 vehicles to run on CNG

*Becomes Nigeria’s largest indigenous licensed gas distribution company

CHIGOZIE AMADI

The management of NIPCO Gas Limited has secured four gas distribution licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Government.

This great milestone was as a result of the company’s commitment over the years on driving use of compressed natural gas (CNG) as vehicular fuel even before government’s policy on decade of gas and gas as energy transition fuel.

The Managing Director and Chief Executive Officer, NIPCO Gas Limited, Nagendra Verma, disclosed this during media briefing at the weekend in Lagos, adding that the company from 2008 to date has been able to convert 15,000 vehicles to run on CNG.

Photo caption: NIPCO CNG filling station

He commended the gas policy of President Bola Tinubu’s administration and particularly the government’s CNG initiative, which the company has been spearheading in the past decades.

Nagendra Verma said: “Compressed Natural Gas (CNG) as an alternative fuel has been invaluable, and we look forward to your continued partnership.

“At NIPCO Gas Ltd, we are tirelessly working in collaboration with NNPC Limited and the Presidential CNG Initiative (PCNGI) to expand CNG stations, conversion workshops and availability of CNG kits across Nigeria. This commitment underscores our vision of providing cleaner, more affordable and sustainable energy solutions.

“We are proud to announce that NIPCO Gas Ltd has been awarded Gas Distribution Licenses (GDL) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Government. This milestone highlights our pioneering role in the sub-sector and strengthens investor confidence in Nigeria’s gas industry. The exclusivity period of 25 years granted under these licenses prevents infrastructure duplication, ensuring efficiency and national resource optimization.

Gas Distribution Licenses Awarded to NIPCO Gas Ltd: Ibadan Axis (Ogere-Ibadan-Oluyole-Olorisaoko-Asejire-Ajoda) – NIPCO Gas/NGML; Benin City – NIPCO Gas; Lekki Free Trade Zone – NIPCO Gas/NGML; and Kara-Sagamu-Abeokuta-Ibadan Axis (Sagamu Interchange-Ibafo-Isheri-Otedola Bridge) – NIPCO Gas/NGML.

“With these awards, NIPCO Gas Ltd now stands as Nigeria’s largest indigenous licensed gas distribution company. This achievement is a testament to our unwavering commitment and the continuous support of stakeholders like you.

Photo caption: One of NIPCO”s newly commissioned CNG stations

“Our operational performance has been exceptional, with significant strides in supply chain efficiency, expansion of CNG infrastructure, customer satisfaction, and an increased market share. We have successfully commissioned several CNG stations across Abuja, Lagos, Edo, Delta, Ogun, Oyo, Kogi, and “Akwa Ibom states. Our joint venture with NNPC Gas Marketing Limited (NGML) has strengthened industrial gas supply, particularly in the Lekki and Lagos-Ibadan corridors.

“NIPCO Gas has entered into agreement with Delta State very recently to construct CNG station and CNG conversion workshop initially in Asaba. We are hoping to increase the number of CNG stations and conversion workshops in Delta State with the support of government. Delta State has provided the land for this facility, which is very proactive and welcoming stel taken by them. We are sure, with such type of public private partnership, it will provide speed to the Presidential CNG initiative.”

Driving CNG Adoption and Accessibility

“We are actively working with PCNGI to increase the availability of CNG conversion kits and workshops. By forging partnerships with local and international suppliers, we are committed to making conversion kits more affordable and efficient. Educating Nigerians on the benefits and safety of CNG remains our top priority, and we count on the media to play a pivotal role in this effort.

“Looking ahead, we plan to expand operations further to meet the growing demand for CNG. Our strategic vision includes launching additional CNG stations nationwide and enhancing infrastructure such as pipelines and storage facilities. However, challenges persist, including the need for a more streamlined, time-bound regulatory approval system to fast-track the expansion of CNG infrastructure. We appreciate the government’s ongoing efforts under President Bola Ahmed Tinubu’s administration to ease industry bottlenecks and provide a supportive policy framework.”

Photo caption: NIPCO CNG facility

A Call for Continued Collaboration

“We strongly believe that with the right policies and infrastructure, CNG can play a transformative role in Nigeria’s energy mix. As an organization, NIPCO Gas remains committed to advancing the use of indigenous natural gas, supporting economic growth, and aligning with the Renewed Hope Agenda of the President.

“I reiterate our commitment to driving the nationwide shift to gas as a primary fuel alternative. We appreciate your ongoing support in sharing our story and achievements, and we look forward to working together in shaping the future of Nigeria’s energy sector.”