CNG to Save Nigerians 40% on Fuel Costs, Says NNPC

The Nigerian National Petroleum Company Limited (NNPC) announced on Thursday that the use of Compressed Natural Gas (CNG) in automobiles will be 40% cheaper than using Premium Motor Spirit (PMS), commonly known as petrol.

The announcement was made during the inauguration of 11 new CNG stations across Abuja and Lagos, part of an ambitious plan to establish 100 such stations nationwide within the next 12 months.

The NNPC’s initiative aims to provide Nigerians with an affordable alternative to petrol, leveraging the country’s abundant natural gas reserves of approximately 209 trillion standard cubic feet.

Huub Stokman, Managing Director of NNPC Retail Limited, highlighted the significance of this development, noting that the expansion of CNG stations represents a major step in diversifying Nigeria’s energy mix and making fuel more accessible and economical for the populace.

“Adding CNG to NNPC stations provides Nigeria with an affordable alternative to existing fuel products. CNG will be about 40% cheaper than petrol in Nigeria. And with continued investments, it could become a significant part of our energy mix,” Stokman stated during the inauguration event in Abuja.

The NNPC has committed to launching over 100 CNG sites within the next year, supported by the establishment of two mechanical training centers combined with conversion centers in Abuja and Lagos.

These centers will facilitate the transition to CNG by providing necessary skills and resources for vehicle conversion and maintenance.

Mele Kyari, Group Chief Executive Officer of NNPC, underscored the company’s dedication to enhancing CNG infrastructure.

“We are constructing six CNG mother stations across the country between now and December, and we are also building three LNG (Liquefied Natural Gas) stations in Ajaokuta. This initiative aims to bring gas closer to consumers, reducing transportation costs and making fuel more affordable,” Kyari said.

The rollout of CNG stations aligns with President Muhammadu Buhari’s initiative to promote sustainable and locally sourced energy solutions.

The new CNG facilities are designed to meet global best practices, ensuring safe, reliable, and efficient service to all customers.

The Executive Vice President of Cleanergy Innovation Ltd, Shettima Imam, emphasized the importance of this collaboration in achieving significant milestones in Nigeria’s energy sector.

The deployment of CNG is expected to provide substantial financial relief to car owners, who have been benefiting from government petrol subsidies ranging between N6 million and N9 million per annum.

With the switch to CNG, an average car owner could save approximately N12 million annually.

“This initiative is not just about providing cheaper fuel; it is about utilizing Nigeria’s natural resources to create a more dynamic and inclusive energy sector,” Imam added.

“The CNG stations are a testament to what can be achieved through collaboration and innovation.”