NIPCO Gas MD Highlights Gas Infrastructure's Role in Nigeria's Energy Sector Growth

NIPCO Gas leads Nigeria's CNG adoption, expanding infrastructure and converting 8,000+ vehicles, supporting the country's energy transition and sustainable transportation.

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NIPCO Gas MD Highlights Gas Infrastructure's Role in Nigeria's Energy Sector Growth

NIPCO Gas Drives Nigeria's Energy Transition with CNG Infrastructure Expansion

Nagendra Verma, the Managing Director of NIPCO Gas Ltd, emphasized the vital role of gas infrastructure development in promoting the growth of Nigeria's energy sector. NIPCO Gas, a leading gas company in the country, has been at the forefront of promoting Compressed Natural Gas (CNG) as an alternative automotive fuel.

Since launching its first CNG station in Benin City in 2009, NIPCO Gas has broadened its CNG network to 15 stations nationwide. The company has successfully converted over 8,000 vehicles to CNG in partnership with the Nigerian National Petroleum Company Limited (NNPC). NIPCO Gas plans to further extend its CNG infrastructure, with an initial commitment to construct 35 additional CNG stations across Nigeria in collaboration with NNPC.

The Federal Government of Nigeria has recognized the prospects of CNG as a cleaner and more affordable fuel alternative. In October 2022, the government launched the Presidential CNG Initiative to provide cheaper, safer, and more climate-friendly transportation options. As part of this initiative, the government aims to roll out 2,700 CNG buses and tricycles nationwide by May 2024, with private sector partners committing over $50 million in investments towards CNG refueling stations, conversion centers, and mother stations across the country.

To support the adoption of CNG, the government has taken measures to lower the cost of conversion and equipment, including zero import duties and VAT exemptions. Experts highlight the cost savings, safety benefits, and potential to extend engine life and reduce carbon emissions compared to petrol.

Why this matters: The expansion of CNG infrastructure and the adoption of CNG vehicles in Nigeria have the potential to significantly reduce the country's dependence on imported petroleum products and support its transition towards a more sustainable energy mix. The joint efforts between the government and private sector players like NIPCO Gas demonstrate a shared commitment to providing diverse and affordable fuel choices to Nigerians while promoting a cleaner and more eco-friendly transportation sector.

Verma expressed gratitude for the recognition of NIPCO Gas as the 'Most Innovative Gas Company of the Year' at the Energy Times Award ceremony in Lagos. He stated, "This award motivates us to further contribute to the industry's expansion and the nation's progress in the gas sector." With the government's target of having 1 million gas-powered vehicles on the road by 2027 and the planned deployment of CNG vehicles for mass transit starting in May 2023, NIPCO Gas is well-positioned to play a central role in driving Nigeria's energy transition in the transportation industry.

Key Takeaways

  • NIPCO Gas is a leading CNG provider, with 15 stations nationwide and 8,000 converted vehicles.
  • Nigeria's government launched the Presidential CNG Initiative to promote CNG as a cleaner fuel alternative.
  • The government aims to roll out 2,700 CNG buses and tricycles by May 2024 with $50M in private investment.
  • CNG offers cost savings, safety benefits, and reduced carbon emissions compared to petrol.
  • NIPCO Gas is well-positioned to drive Nigeria's energy transition in the transportation sector.