The Federal Government on Thursday inaugurated a Compressed Natural Gas plant in Lagos with a capacity of 5.2 million standard cubic feet per day, aiming to alleviate the effects of removing petrol subsidies on Nigerians.
Axxela-owned Transit Gas Nigeria Limited and NNPC Gas Marketing Limited collaborated to build the CNG plant.
Under the theme “From Gas to Prosperity: CNG for All,” Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who turned on the plant at the Isolo Industrial Area, Ilasamaja in Lagos, stated that the event marks a significant turning point in the nation’s development of secure, affordable, and sustainable energy sources.
The Minister referred to 2024 as a historic year for Nigerians, emphasizing that President Bola Tinubu had ushered in several new beginnings in the lives of Nigerians with his brave decision to do away with fuel subsidies and encourage the acceptance and widespread use of gas.
“Although the elimination of the Premium Motor Spirit 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.
Since CNG burns the cleanest in terms of emissions of soot and nitrogen oxide, Ekpo pointed out that the use of CNG as a transportation fuel is a well-established technology utilized throughout the world.
The minister continued, “CNG passenger vehicles emit 5–10% less CO2 than gasoline-powered vehicles, even though they can be used to power passenger cars and city buses.”
Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, had earlier stated in his remarks that the NNPC and Axxela Limited had come to a final investment decision to deliver six CNG mother and service stations plants and stations with a capacity of 5.2mmscfd each, in selected locations spread across the six geopolitical zones, including the Federal Capital Territory, to maintain energy security and provide more access to CNG by the Nigerian populace.
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He added that the action was in addition to other joint venture partnerships on CNG and NNPC Retail’s phased deployment of CNG in more than 100 stations nationwide.
Specifically, Kyari disclosed that NNPC’s endeavors included the commissioning of the NNPC CNG Station in Ilasamaja.
He said the Petroleum Industry Act 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.
In order to ensure sustainability and foster economic development both within and outside the state, the state is supporting capacity building in CNG conversion, according to Ogun State Governor Dapo Abiodun, who was represented by State Commissioner of Environment Mr. Ola Oresanya.
The plant’s commissioning, according to Michael Oluwagbemi, the Chief Executive of the Presidential CNG Initiative, is evidence of President Tinubu’s dedication to offering sustainable energy solutions to Nigerians.
Bolaji Osunsanya, the CEO of Axxela, expressed gratitude to all parties involved, particularly the NNPC, for its unwavering vision for the plant’s delivery. He emphasized that after years of preparation, his company now has a fantastic opportunity to provide Nigerians with cheaper, cleaner energy.
With a capacity of 5.2MMscf per day, the NNPC CNG Station Ilasamaja can supply gas to businesses and industries in addition to serving automobiles.
With its dispensing points for CNG, the facility can fill approximately 3,700 cars or 600 trucks/buses per day, ensuring a steady supply of CNG for use in cars, buses, trucks, and tricycles.
