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FG partners Portland Gas to construct CNG conversion sites in Nigeria

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The Federal Government 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.

What you should know:

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.

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.