By Yemi Olakitan
The Federal Government of Nigeria has continued to facilitate the conversion of all existing vehicles to Utilize Compressed Natural Gas, CNG and it is partnering with Portland Gas to construct CNG conversion sites in the country.
At the Portland Gas Green Park’s groundbreaking ceremony earlier this week, Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), announced the federal government’s approval for Portland Gas to commence constructing Compressed Natural Gas conversion sites.
Farouk, who was represented by Lukman Cardoso, emphasized the NMDPRA’s efforts in promoting cleaner fuels like CNG, LPG, and others for domestic and industrial use.
By establishing the facility in Lagos’s Ojota area, which sees a growing population, the aim is to provide cost-effective alternative fuels for households and industries.
Cardoso said, “The idea to set up a one-stop shop fusing Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Electric Vehicle Charging services in one facility is a powerful testament to your unwavering commitment to innovation and environmental stewardship.”
Additionally, Olu Verheijen, the Special Adviser on Energy to President Tinubu, who was represented by Eriye Onagoruwa, highlighted the collaboration between the Federal Government’s compressed natural gas initiative and Portland Gas.
This partnership aims to transition towards a more environmentally conscious and economically sustainable energy landscape.
She said: “The park will create new jobs, diversify our economy, and enhance our energy independence. This will in turn enable us to reduce our reliance on imported fuels, stabilize energy prices, and boost our economic growth. It will demonstrate to the world that Nigeria is committed to tackling climate change and building a cleaner, more resilient future.”
Meanwhile, the founder of Portland Gas, Folajimi Mohammed, noted the removal of fuel subsidies and the regulation of petroleum product prices, resulting in increased fuel costs.
He stressed the need to explore alternative fuel sources like CNG and EV (Electric Vehicles) for transportation. The projects at Portland Gas include eco-green CNG generators, converting vehicles from petrol or diesel to CNG, and establishing training centres.
Mohammed also highlighted the affordability of CNG compared to traditional fuels, noting significant cost savings, reduced greenhouse gas emissions, less pollution, and enhanced safety, reflecting a positive shift towards more sustainable and environmentally friendly fuel options.
Recall that, the FG had earlier disclosed that the cost of CNG per litre is N250. Meanwhile, during his Independence Day speech on October 1, President Tinubu said that plans are underway to expedite the procurement process for new CNG conversion kits.
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He pledged that the kits would soon become available, facilitating the conversion of existing vehicles to utilize CNG.
He also said that efforts were underway to establish training centres and workshops nationwide. These facilities aim to equip transport operators and budding entrepreneurs with the necessary skills and opportunities in this innovative transportation landscape.
Meanwhile, the Federal Government has reiterated its commitment to ensuring there is sufficient gas in the country, saying it has put in place measures that would drive the compressed natural gas (CNG) project.
Special Adviser on Energy to President Bola Tinubu, Olu Verheijen, said this during the ground-breaking ceremony of Portland Gas in Lagos.
Represented by Eriye Onagoruwa, Verheijen said the signing dovetailed into the recently launched Presidential Compressed Natural Gas Initiative (P-CNGI), as part of the commitment to change the transportation landscape, reduce energy costs, stimulate economic growth and foster a cleaner environment by reducing carbon emissions and promote energy security through domestic natural gas resources.
She said the Federal Government through the P-CNGI has joined forces with Portland Gas to forge a path towards a more environmentally conscious- and economically viable energy landscape.
She said Portland Gas Green Park was undoubtedly a cleaner and more efficient energy source. She said: “The park will create new jobs, diversify our economy and enhance our energy independence. This will in turn enable us to reduce our reliance on imported fuels, stabilise energy prices and boost our economic growth. It will demonstrate to the world that Nigeria is committed to tackling climate change and building a cleaner, more resilient future.”
Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, also said the Federal Government has approved Portland Gas to begin the construction of CNG conversion sites.
He said the move underscored the government’s resolve to reduce heavy carbon footprints, and harmful emissions and mitigate the impact of traditional fossil fuels on the environment.
Represented by Regional Coordinator, South-West Region, NMDPRA, Lukman Cardoso, Farouk, reiterated that the NMDPRA has also been driving penetration of cleaner fuels through various initiatives, aimed at deepening the utilisation of CNG, LPG and other cleaner fuels for domestic and industrial purposes.
He added that siting the facility in Ojota, Lagos, due to the increasing population, was very strategic, as it was positioned to make important cost-effective alternative fuels readily available for both domestic and industrial users.
Founder, Portland Gas, Folajimi Mohammed, said following the removal of fuel subsidies and the full regulation of the petroleum products market, which significantly increased the price of fuel, there is a need to consider alternative sources of fuel, primarily CNG and EV for vehicles. He said the projects were for eco-green CNG generators, auto conversion to CNG from petrol or diesel and training centres.
“With the removal of fuel subsidy, pricing for fuel is more affordable and alleviates suffering, which ranges from N270 to N300 compared to the fuel of N600 or diesel of N1,000 and it saves about 76 per cent of savings. We would be achieving a reduction in greenhouse gas emission, less pollution and extremely safe,” he said.
