CNG plant in Lagos,

Fuel subsidy removal: FG commissions 5.2mmscfd CNG plant in Lagos

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The federal government, in its efforts to provide alternative sources of fuel for Nigerians, has commissioned a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos.

The plant, which was said to be a step towards lessening the impact of subsidy removal on petrol, was commissioned by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo at the Isolo Industrial Area, Ilasamaja in Lagos, on Thursday.

Ekpo, while speaking, said the occasion, under the theme “From Gas to Prosperity: CNG for All,” represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.

The Minister described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.

“Although the elimination of the Premium Motor Spirit (PMS) 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.

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Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally, as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions. While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10% less CO2 than comparable gasoline-powered passenger vehicles, the Minister added.

Earlier in his remarks, the GCEO NNPC Limited, Mallam Mele Kyari, said that to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC has reached a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service station plants and stations of 5.2 mmscfd capacity each, in selected locations spread across the six geopolitical zones, including the FCT, to ease access to bulk CNG. 

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 his goodwill message, the Chief Executive, Presidential CNG Initiative, Engineer Michael Oluwagbemi, described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.

 


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