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NNPCL Unveils Plans to Build 12 CNG Stations, LNG Plants to Boost Domestic Gas Supply

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In a bid to boost the existing 1.6 billion standard cubic feet (bscf) daily supply, the Nigerian National Petroleum Company Ltd (NNPCL) has announced the construction of 12 Compressed Natural Gas (CNG) stations and Liquefied Natural Gas (LNG) plants across the nation.

Mele Kyari, the Group CEO of NNPCL, announced the initiative on Monday at the opening of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition held in Lagos.

The construction follows the initiative of the federal government of Nigeria on the conversion of petroleum-powered vehicles to CNG to cut the rising cost of transportation.

It was gathered that switching to CNG will increase the demand for LNG. Therefore, to meet the daily gas domestic market demand, NNPCL emphasized that building more stations will suffice.

According to Kyari, NNPCL’s projects will strengthen the country’s energy sector.

He also noted that it would aid the expansion of gas infrastructure to locations like the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, and supply chain, solely to reduce transportation costs due to the affordability of the CNG initiative.

Kyari added that the initiative would help stabilize the Naira, reduce Nigeria’s dependence on foreign exchange, and promote an affordable supply of petroleum products by providing an alternative energy source, potentially easing the nation’s reliance on imported fuels.

“Together, let us build a Nigeria where energy is secure, sustainable, and affordable for all,” he said.

Kyari’s vision highlights a commitment to overcoming challenges within the energy sector and ensuring a stable, sustainable, and inclusive energy supply that will support Nigeria’s long-term growth and development.

In response to allegations that NNPCL hinders domestic refinery operations, Kyari clarified that the company’s partial ownership of the Dangote Refinery is a strategic move aimed at boosting domestic fuel supplies.”

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