FG targets 500 CNG stations in three years

The federal government says it plans to set up 500 compressed natural gas (CNG) stations nationwide over the next three years.

In a statement on Sunday, Oluwole Adama, executive director of the midstream and downstream gas infrastructure fund (MDGIF), said the initiative is aimed at speeding up Nigeria’s shift to cleaner, more affordable fuels and reducing reliance on petrol.

He said the decision followed the conclusion of discussions between the MDGIF and Endurance Group, a major Chinese manufacturer.

Adama said the talks focused on establishing a government-backed special purpose vehicle (SPV) to be promoted by the MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.

“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain,” he said.

“Under this agreement, we will set-up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”

Adama noted that the project will help reduce the long queues currently seen at existing CNG stations by expanding access to refuelling points and ensuring a steady supply through enhanced logistics and distribution systems.

Also speaking, Oluwatoyin Subair, senior special adviser to the president on special duties and domestic affairs, said the project aligns with President Bola Tinubu’s vision of strengthening energy security by promoting wider adoption of auto-CNG and reducing the country’s heavy reliance on petrol and diesel, particularly in the transportation sector.

He said the initiative complements the administration’s wider economic reforms by promoting cleaner and more affordable energy options for Nigerians.

Subair said it will also create new job opportunities across the domestic gas value chain.

On his part, Eric Lin, chief executive officer (CEO) of Endurance Group, said the SPV aims to build a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG equipment to certified operators.

He said it will also ensure a consistent and reliable gas supply through a world-class virtual pipeline network.