FG Inaugurates Largest CNG Plant in Lagos, Plans Nationwide Expansion
Inauguration and Purpose :
Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), inaugurated the largest Compressed Natural Gas (CNG) plant in Lagos at the Isolo Industrial Area, Ilasamaja, on Thursday. He stated that this development provides an alternative fuel source for Nigerians and aims to mitigate the impact of petrol subsidy removal.
Theme and Vision:
The event, themed “From Gas to Prosperity: CNG for All,” marks a critical point in developing affordable, sustainable, and secure energy sources in Nigeria. Ekpo highlighted 2024 as a historic year for the country, citing President Tinubu’s bold move to remove fuel subsidies and promote LPG usage as transformative.
Advantages of CNG:
Ekpo emphasized that using CNG as a transport fuel is a well-established technology globally. It is the cleanest burning fuel in terms of nitrogen oxide and soot emissions. CNG can power passenger cars and city buses, emitting 5-10% less CO2 than comparable gasoline vehicles.
NNPC’s Role and Plans:
Malam Mele Kyari, Group Chief Executive Officer of Nigerian National Petroleum Company Ltd. (NNPC), highlighted the company’s commitment to energy security and increased CNG access. NNPC has finalized an investment decision with Axxela Ltd. to establish six CNG mother and service station plants. These stations, each with a capacity of 5.2 million standard cubic feet per day (mmscfd), will be located across the six geopolitical zones, including the FCT.
Nationwide Deployment:
NNPC Retail is also rolling out CNG in over 100 stations nationwide, alongside joint venture partnerships. The inauguration of the NNPC CNG Station in Ilasamaja, Lagos, is part of a broader effort to enhance domestic gas supply and utilization by deploying gas infrastructure across Nigeria. The Petroleum Industry Act (PIA) mandates NNPC to promote domestic gas use, reinforcing its commitment to critical gas infrastructure projects.
Government and Stakeholder Support:
Lagos State Governor Babajide Sanwo-Olu praised the CNG plant’s alignment with the state’s vision for economic development, job creation, and industrialization. The state plans to deploy 2,500 conversion kits and over 2,000 new CNG buses by the end of the year.
Ogun State Governor Dapo Abiodun, represented by State Commissioner of Environment Ola Oresanya, stated that Ogun is supporting CNG conversion capacity building to ensure sustainability and economic growth.
Michael Oluwagbemi, Chief Executive of the Presidential CNG Initiative, commended the plant as a testament to President Tinubu’s dedication to sustainable energy solutions. Bolaji Osunsanya, CEO of Axxela, thanked stakeholders, particularly NNPC, for their vision and support.
Facility Details:
The NNPC CNG Station Ilasamaja is a state-of-the-art facility with a capacity of 5.2 million standard cubic feet per day. It can serve vehicles and supply gas to industries, with dispensing points for cars, buses, trucks, and tricycles. The plant can fill about 3,700 cars or 600 trucks/buses daily, ensuring a steady CNG supply.
