The Nigerian National Petroleum Company Limited (NNPC) announced on Thursday that using Compressed Natural Gas (CNG) in automobiles is 40 percent cheaper than using Premium Motor Spirit (PMS), commonly known as petrol. This announcement comes as NNPC inaugurated 11 CNG stations in Abuja and Lagos, with plans to have 100 stations operational nationwide within the next 12 months.
At the inauguration in Abuja, NNPC Retail Limited’s Managing Director, Huub Stokman, highlighted that adding CNG to NNPC stations provides Nigeria with an affordable alternative to existing fuel products. He emphasized that CNG would be approximately 40 percent cheaper than petrol and, with continued investment, could become a significant part of Nigeria’s energy mix.
“In the next 12 months, NNPC Retail will have launched over 100 CNG sites,” Stokman stated. He added that NNPC is supporting implementation partners to establish two mechanical training and conversion centers in Abuja and Lagos. “It is fantastic that Nigeria is utilizing its own natural resources to bring affordable energy to the people of Nigeria, and NNPC Retail is very proud to be part of this journey.”
Nigeria boasts abundant gas reserves of about 209 trillion standard cubic feet. The Group Chief Executive Officer of NNPC, Mele Kyari, emphasized that the company and its partners are developing infrastructure to make CNG more accessible to end users.
“We will construct six CNG mother stations across the country between now and December,” Kyari said. He also mentioned ongoing projects to build three LNG stations in Ajaokuta, aiming to bring gas closer to consumers and reduce transportation distances, ultimately lowering fuel costs nationwide.
The Executive Vice President of Cleanergy Innovation Ltd, Shettima Imam, partners of NNPC in the design and installation of the CNG stations, remarked on the significance of this development for Nigeria’s journey towards affordable, sustainable, and environmentally friendly fuel solutions.
“These CNG filling stations show the commitment to diversify Nigeria’s energy offerings and promote Mr President’s CNG initiative,” Imam stated. He highlighted that the new facilities are designed to ensure safe, reliable, and efficient service, aligning with global best practices.
At the event, it was explained that the government had been subsidizing petrol consumption for an average car owner by about N6m to N9m per annum. However, with the deployment and use of CNG, an average car owner could save about N12m annually.
The development of CNG stations is a significant step in NNPC’s efforts to diversify Nigeria’s energy mix, making fuel more affordable and environmentally friendly while leveraging the country’s natural gas resources.
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