FG's $200m CNG Conversion Project

FG's $200m CNG Conversion Project to Reduce Emissions

“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel- powered, and more conversion...”

Federal Government Invests $200m in Compressed Natural Gas Vehicle Conversion.

The Presidential Compressed Natural Gas Initiative (PCNGI) has announced significant investments, surpassing $200 million, across the CNG value chain.

Michael Oluwagbemi, PCNGI's Project Director and CEO, revealed that the initiative has achieved a major milestone, converting over 100,000 vehicles from petrol to CNG.

In a statement released on November 6, Oluwagbemi highlighted the establishment of 140 conversion centers nationwide, demonstrating PCNGI's commitment to expanding CNG infrastructure.

Oluwagbemi emphasized the initiative's far-reaching impact, citing the creation of thousands of new jobs and economic opportunities.

 

“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel- powered, and more conversion centres are being established across the country. In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line,” he said.

PCNGI's nationwide expansion has been remarkable, with conversion centers surging from just 7 in 2023 to over 140 today.

This rapid growth has generated substantial employment opportunities, with more than 2,000 Nigerians currently working at these centers.

The initiative is poised for further expansion, anticipating the creation of even more jobs and stimulating economic growth.

“We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners. However, the number of conversion centres has risen from seven in 2023 to more than 140 across the country.

“More than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up. In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation's energy dynamics,” Oluwagbemi stated.

Compressed Natural Gas (CNG) is being hailed as a game-changer in Nigeria's energy landscape. According to Michael Oluwagbemi, Project Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), CNG offers a cost-effective, safer, and environmentally cleaner alternative to traditional fuels. ”It is lighter and eight times less explosive than diesel and eighteen times less explosive than petrol. It is also more readily available and a more sustainable alternative for Nigeria's energy security,” he emphasized.

The benefits of CNG are numerous. Not only is it a cleaner-burning fuel, producing fewer greenhouse gases and harmful pollutants, but it's also more efficient and cost-effective. With CNG, vehicle owners can enjoy lower fuel prices and improved fuel economy, making it a more affordable option for both businesses and individuals.

In terms of safety, CNG is a clear winner. Its lighter and less explosive properties reduce the risk of fire or explosion, making it a safer choice for handling and storage. Additionally, CNG storage tanks undergo rigorous testing, ensuring they can withstand high levels of pressure.

The PCNGI has crunched the numbers, and the results are promising. Even if one million vehicles were converted to CNG, the demand would represent only 2.75 percent of Nigeria's daily gas production, making it both substantial and manageable.

Benefits of CNG:

Cost-Effective: Lower fuel prices and improved fuel economy

Environmentally Friendly: Cleaner-burning fuel, reducing greenhouse gases and pollutants

Safer: Lighter and less explosive properties, reducing risk of fire or explosion

More Readily Available: A more sustainable alternative for Nigeria's energy security

Overall, CNG is poised to revolutionize Nigeria's energy landscape, offering a cleaner, safer, and more cost-effective alternative to traditional fuels.

Michael Oluwagbemi provided updates on infrastructure investments, revealing that over $175 million has been allocated to develop mother stations. Additionally, 65 new licenses have been issued to facilitate expansion.

“CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators,” Oluwagbemi noted.

Addressing concerns about compatibility, Oluwagbemi cited international research. “Studies from countries like Egypt, India, and Iran show that older vehicles often perform better on CNG than on petrol,” he said, alleviating worries about converting older vehicles.