Nigeria has unveiled plans to establish an additional 500 Compressed Natural Gas (CNG) stations across the country, according to a recent report by the Midstream and Downstream Gas Infrastructure Fund (MDGIF). The project, set to be executed in partnership with Chinese manufacturer Endurance Group over the next three years, aims to accelerate Nigeria’s transition to cleaner fuels by addressing infrastructure gaps in the CNG value chain.
The collaboration involves the creation of a government-backed special purpose vehicle, to be promoted by MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners. This vehicle, known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), will facilitate the deployment of 500 integrated CNG refueling stations, develop Liquefied Compressed Natural Gas (LCNG) supply infrastructure, and provide CNG and Liquefied Natural Gas (LNG) transportation trucks with truck-mounted cascades. This will effectively create a virtual pipeline network across all states nationwide.
The project aligns with President Bola Tinubu’s vision of ensuring energy security by deepening the use of auto CNG and reducing the country’s overdependence on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), particularly in the transportation sector. The initiative supports the administration’s broader economic reforms, which aim to promote cleaner, more affordable energy alternatives for Nigerians while creating new employment opportunities within the domestic gas value chain.
The establishment of a nationwide CNG refueling, maintenance, and logistics ecosystem is a key objective of the special purpose vehicle. This will be achieved by leasing CNG-related equipment to certified operators and ensuring a consistent and reliable gas supply through a world-class virtual pipeline network. The project is expected to play a significant role in Nigeria’s energy landscape, providing a cleaner and more affordable alternative to traditional fuels.
With the implementation of this project, Nigeria is poised to make significant strides in its transition to cleaner fuels, reducing its environmental footprint and promoting economic growth. The establishment of 500 additional CNG stations will not only provide a more affordable and environmentally friendly option for motorists but also create new job opportunities and stimulate economic activity in the sector. As the country moves forward with this initiative, it is likely to have a positive impact on the environment, the economy, and the lives of Nigerians.