Energy
FG Moves To Cushion Effects Of Subsidy Removal, Commissions 5.2 mmscfd CNG Plant In Lagos
. . . NNPC Plans To Roll Out Six More CNG Stations Nationwide
In its continued efforts to provide alternative source of fuel for Nigerians and lessen the impact of subsidy removal on petrol, the Federal Government has commissioned a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos.
Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, who commissioned the plant at the Isolo Industrial Area, Ilasamaja in Lagos, on Thursday, said the occasion, under the theme “From Gas to Prosperity: CNG for All”, represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.
The Minister described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.
“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” the Minister stated.
Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions. While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10% less CO2 than comparable gasoline powered passenger vehicles, the Minister added.
Earlier in his remarks, the GCEO NNPC Limited, Mallam Mele Kyari said to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC has reached a Final Investment Decision (FID) with Axxela Limited to deliver Six CNG mother and service stations plants and stations of 5.2mmscfd capacity each, in selected locations spread across the six geopolitical zones including the FCT to ease access to bulk CNG.
He stated that the move was in addition to NNPC Retail’s phased deployment of CNG in over 100 stations across the country as well as other Joint Venture partnerships on CNG.
In particular, Kyari revealed that the commissioning of the NNPC CNG Station in Ilasamaja Lagos was part of NNPC’s efforts to grow domestic gas supply and utilization by deploying gas infrastructure nationwide.
He said the Petroleum Industry Act (PIA) explicitly mandated NNPC to promote domestic gas utilisation, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.
“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilise our gas resources for industrialisation, power generation and economic prosperity for all,” Kyari stated.
In his speech, the Lagos State Governor, Babajide Sanwo-Olu said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation and industrialisation in the State.
He said in demonstration of its resolve to champion CNG utilisation across Lagos State, the State Government has concluded plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will commence operations before the end of the year.
The Ogun State Governor, Dapo Abiodun, represented by the State Commissioner of Environment, Mr. Ola Oresanya said the State is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the State and beyond.
In his goodwill message, the Chief Executive, Presidential CNG Initiative, Engineer Michael Oluwagbemi described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.
The CEO of Axxela, Bolaji Osunsanya thanked all the stakeholders especially the NNPC for its consistent vision towards the delivery of the plant, stressing that his company’s many years of preparation have now met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.
The NNPC CNG Station Ilasamaja is a 5.2MMscf per day capacity station that can serve vehicles and also supply gas to industries and other companies. The Facility has dispensing points for filling cars, buses, trucks and tricycles, utilizing CNG and can fill about 3,700 cars or 600 trucks/buses every day thereby providing a constant supply of CNG.
The state-of- the art CNG plant was built through a partnership between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (An Axxela Company).
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has projected a significant reduction in petrol prices once the Dangote Petroleum Refinery begins direct sales to oil marketers.
Speaking in an interview with Channels Television, IPMAN spokesperson Chinedu Ukadike said the association is in talks with the Dangote Refinery to secure direct lifting rights for Premium Motor Spirit (PMS), commonly known as petrol.
Read Also: JUST IN: CBN Pushes Economy Harder With Steep Interest Rate Hike To 27.25%
This move comes after the federal government directed the refinery to sell exclusively to the Nigerian National Petroleum Company Limited (NNPC), with other marketers required to buy from the national oil firm.
He explained that bypassing middlemen by allowing marketers to source petrol directly from the refinery would cut unnecessary distribution costs, leading to lower prices at the pump for consumers.
Ukadike said, “We have written to Dangote, and he has responded positively, indicating readiness to discuss with us. We believe that these discussions will soon yield results, and whatever agreement we reach will be shared with Nigerians. We want to take our products directly to cut off all these unnecessary price hikes.”
Addressing public concerns about independent marketers being driven by profit, Ukadike reaffirmed IPMAN’s commitment to ensuring fair and affordable fuel prices for Nigerians.
He also expressed optimism that the collaboration with the Dangote Refinery, alongside the anticipated reopening of the Port Harcourt Refinery, would help resolve bureaucratic bottlenecks and stabilize petrol prices across the country.
The $550 million upstream gas project between the NNPC Ltd and TotalEnergies on the development of the Ubeta field has taken off, the Presidency announced on Tuesday.
This was contained in a statement in Abuja, on Wednesday, by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye.
ALSO READ: NNPC Confirms Petrol Purchase From Dangote In Dollars, Naira Transactions Commence Oct
According to Soneye, the Special Adviser to the President on Energy, Olu Verheijen, made the disclosure during an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.
“The signing ceremony of the 550 million USD Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June, this year,” he stated.
The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.
It was gathered that at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, Verheijen revealed that the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.
Verheijen added that major energy reforms introduced by President Bola Ahmed Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners, including the US government.
She said the key reforms had improved the viability of the gas-to-power value chain of the country.
The reforms, according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.
She added that the President issued five new executive orders to support the reform efforts, aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
The presidential aide said the directives are aimed to immediately unlock up to $2.5 billion in new oil and gas investments in the country.
Responding, the U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.
“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonisation, and economic growth goals,” he said.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event.
Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited were also in attendance.
The U.S. delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.
Joe Ajaero, the President of the Nigeria Labour Congress (NLC), has criticized the Nigerian government for its role in the current pricing dispute between the Nigeria National Petroleum Corporation Limited (NNPCL) and the Dangote Refinery, attributing it to erratic government policies.
In a press briefing at Murtala Muhammed Airport Terminal Two on Wednesday, Ajaero condemned the situation as fraudulent and argued that a deregulated market should encourage competition and consumer choice, not impose restrictive pricing.
He asserted that the attempt to regulate Dangote’s pricing or influence private sector costs undermines fair market practices.
Related News: Fuel Crisis Looms As NCSCN Urges Dangote Refinery To Address Fuel Pricing, Supply Issues
Ajaero called on Nigerians to voice their concerns, claiming the government’s actions are undermining the private sector’s ability to set prices.
He said, “For a product produced here, he didn’t import with dollars, there was no landing cost, and they want him to sell it at the same cost as what they are bringing from abroad. That is fraudulent and unacceptable.”
Additionally, Ajaero criticized the government for not repairing the refineries as promised in August of the previous year, noting that no progress has been made as of September 2024.
On the subject of the N70,000 minimum wage, Ajaero assured that implementation is on track according to the agreement made on April 18, 2024.
He confirmed that the National Assembly has approved the bill, and the committee on consequential adjustments is actively working on its rollout.
BBNaija’s Vee Dismisses VDM’s Supporters
Lebanon Must Not Become The Next Gaza – Australia’s Foreign Minister Repeats Ceasefire Call
Helicopter Crash In Pakistan Claims Six Lives, Injures Eight
South African Police Launch Manhunt After 17 Killed In Mass Shooting
Witness Reveals How $15.8m Was Delivered To Ex-Benue Governor In ₦3.1bn Fraud Case
FIFA Slams 2-Match Ban On Argentina’s Martinez
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Adeosun: We are investing in infrastructure to grow the private sector
Shell launches Nigeria campaign on energy efficiency
