The Nigerian government has invested $450 million in the Compressed Natural Gas (CNG) sector as part of efforts to drive the nation’s energy transition and reduce dependence on petrol. Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement at the Practical Nigerian Content Forum in Yenagoa, Bayelsa State.
Ekpo emphasized that natural gas, particularly CNG, is poised to become the mainstay of Nigeria’s energy future. He outlined that the shift from petrol to CNG-powered engines was a key part of President Bola Tinubu’s plan to reduce fuel subsidy payments, as stated in his inaugural speech.
The Minister highlighted the significant strides made through the Presidential Compressed Natural Gas Initiative (PCNGI), which aims to accelerate the adoption of CNG for mobility and power generation. The initiative has supported the deployment of CNG vehicles, conversion kits, and infrastructure development, with a focus on creating public-private partnerships.
Ekpo revealed that over $450 million had been invested in CNG infrastructure, including conversion centers, supply platforms, and the development of 65 mother stations and 88 daughter stations. The initiative has already led to the acquisition of over 150,000 conversion kits, with more than 34,000 vehicles converted to run on CNG. Additionally, 1,000 technicians have been trained to support the CNG industry.
In addition to the CNG initiative, Ekpo detailed key gas projects that have been completed, including the SEPLAT Assa North and SPDC Ohaji South projects, which together provide 600 million standard cubic feet per day of natural gas. He also mentioned that the OB3 and AKK gas pipelines, critical for delivering gas across Nigeria, are nearing completion.
Looking ahead, Ekpo stated that Nigeria’s gas production is expected to increase by nearly 4 billion cubic feet per day by 2030, with the government already achieving 25% of this target. He also stressed the importance of prioritizing local content in the gas sector, with local companies benefiting from the Midstream and Downstream Gas Infrastructure Fund, which has already empowered six local companies with N122 billion in funding.
Ekpo concluded by reiterating Nigeria’s commitment to leveraging its local capabilities to enhance energy security, boost economic growth, and achieve environmental sustainability. The government’s efforts in the gas sector are seen as crucial in powering the nation’s future energy needs and creating new economic opportunities for local businesses.
