Price of CNG Crashes to N200/scm as NIPCOGas Unveils Stations in Lagos

Sunday, April 14, 2024.

Price of CNG Crashes to N200/scm as NIPCOGas Unveils Stations in Lagos…

Over the past 14 years, the Nigerian Independent Petroleum Company (NIPCO) has made investments in the gas sector totaling more than N100 billion.

These investments are aimed at increasing the utilization of compressed natural gas (CNG), also referred to as auto-gas, in Nigeria.

CNG Crashes to N200/scm

After announcing the completion of four CNG stations in Lagos, NIPCO GAS is getting ready to promote the use of compressed natural gas, also known as CNG, as an alternative to premium motor spirit, also known as petrol, in the commercial hub of Lagos.

Beginning by the end of April, the facilities would be opened for commercial operations, making them the first of their kind in the state, which is currently experiencing lengthy lines at gas stations.

During a briefing on the development that took place over the weekend, the managing director of NIPCO Gas Ltd., Nagendra Verma, stated that the company has been involved in the development and expansion of AutoCNG since 2009.

According to Leadership’s new report, Verma promised a steady supply after the launch.

He said that right now, AutoCNG is sold for NGN200/standard cubic feet (scm) compared to NGN610/ltr for gasoline in Lagos and NGN230/scm compared to NGN670/ltr for PMS in Abuja. This is for cars, taxis, and Keke’s.

In addition, the managing director shared that AutoCNG is being sold at NGN260/scm in Lagos, which is lower than the AGO price of NGN1250/ltr, and at NGN290/scm in Abuja, which is also lower than the AGO price of NGN1300/ltr.

This information pertains to heavy commercial vehicles.

“AutoCNG will become the Choice fuel for Nigeria, which has the potential to reduce the pressure on importation as well as on Forex,” he continued. “NIPCO Gas is certain that with the continuous focus and push by the current government, AutoCNG will become the fuel of choice for Nigeria.”

“We are sure that once expanded across Nigeria; will surely and definitely relieve the masses and motorists from high fuel cost,” he is quoted as saying. “AutoCNG is a project for masses and of National Cause and Importance,” he goes on to say.

“We are constantly seeking the blessing and support of the government and the media in order to make auto-compressed natural gas (AutoCNG) a fuel that is more environmentally friendly, cleaner, and more relieving in Nigeria.”

According to Verma, who was speaking about the strategy of the company, the company began with Benin City and then expanded the AutoCNG network to Ibafo in Ogun State and then to Kogi State later on.

In addition, he emphasized that the AutoCNG network had expanded to Abuja Federal Capital Territory (FCT), Ibadan in Oyo State, and Oron in Akwa Ibom State as a result of the actions and clear mandates implemented by the current government.

There are currently 15 AutoCNG stations that are operated by NIPCO Gas across the country of Nigeria. CNG cars that originate in Lagos are able to travel to Abuja and Kaduna by obtaining CNG from the NIPCO Gas AutoCNG stations that are located during their journey. It is our firm belief that automobile drivers would soon be able to traverse every nook and cranny of Nigeria.

For the purpose of expanding AutoCNG stations across a number of states in Nigeria, NIPCO Gas has formed a partnership with the Nigerian National Petroleum Company Limited (NNPCL) in accordance with the guidelines issued by the current administration.

A significant sense of duty and dedication towards the people of Nigeria and the government is brought about by the partnership with NNPCL, which is carried out in accordance with orders from the Presidency.

“NIPCO Gas is honored to have this trust and belief by the Government and NNPCL. We have assured them that we will not leave any stone unturned in order to make this AutoCNG expansion plan a reality, which will relieve thousands and millions of citizens from the pain that they are experiencing at the present time.” Verma was included.

He also divulged that, as part of the ongoing relationship, the construction of thirty-five AutoCNG vehicles is scheduled to take place in stages. In addition to this, he disclosed that the locations of 19 CNG stations have been determined, and that the company has been granted approval from the NMDPRA and other statutory agencies in stages.

The completion of four CNG stations in Lagos is expected to take place in April or May of 2024, according to him. He also stated that “for making this AutoCNG expansion project a reality, we are getting due support and guidance from all including but not limited to PCNGI, NMDPRA, SON, NNPC, other Ministries and Departments, and Media too who are also eager to see this as reality in the near future.”

Verma stated that the gas distribution and AutoCNG projects are extremely capital-intensive projects that require a significant amount of investment as well as the greatest level of devotion and tenacity. He expressed the hope that the company will be able to make it happen with the support of everyone and with the continual push from the Presidency.

He went on to say that in addition to AutoCNG, NIPCO Gas is also building the gas transportation pipeline towards Ibadan and the gas distribution network in the Lekki Free Zone. He said this in support of his previous statement.

Every one of these initiatives calls for a significant financial investment and a lengthy gestation period.

After the aforementioned projects have been put into operation, they will be of tremendous assistance in increasing the use of domestic gas, which is still being underutilized, and lowering the reliance on the importation of other fossil fuels, which will ultimately result in a reduction in the strain on the foreign exchange market. he went on to say

Source: Leadership