PCNGi : Over $200m invested in CNG initiative
The Presidential Compressed Natural Gas Initiative (PCNGi) has announced that more than $200 million has been invested in the Compressed Natural Gas (CNG) value chain.
This initiative encompasses the establishment of 140 conversion centres nationwide.
In a statement issued on Wednesday, Michael Oluwagbemi, the Project Director and Chief Executive Officer of PCNGi, announced that more than 100,000 vehicles have been successfully converted from petrol to Compressed Natural Gas (CNG) since the initiation of this program last year.
The PCNGi made the clarifications in response to what it described as “a toxic debate against the initiative in the media.”
According to Oluwagbemi “To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country. In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line.
“Going by the level of progress being made as regards the adoption and deployment of CNG infrastructure, we are concerned over certain instances of misinformation against this epochal initiative by a section of the media.
“It is surprising how the choice of petrol, for which Nigeria spends about $10 billion annually on subsidy, and CNG which has the potential to save the nation $3 billion while adding $2 billion in revenue to the national purse in the next three to four years, is an issue of toxic debate.”
Addressing concerns on the ease of conversion, the PCNGi said it views the development as an opportunity rather than a challenge.
“We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners. However, the number of conversion centres has risen from seven in 2023 to more than 140 across the country.”
The PCNGi added that the initiative has so far provided jobs for over 2000 Nigerians who currently work across the conversion centres.
“In addition, more than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up. In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation’s energy dynamics.”
Oluwagbemi further reiterated that CNG is safe and clean to use.
“It is lighter and eight times less explosive than diesel and eighteen times less explosive than petrol. It is also more readily available and a more sustainable alternative for Nigeria’s energy security.”
“With one million vehicles running on CNG, overall demand annually will be 220 million standard cubic feet of gas a day, or 2.75% of our current daily gas production, of which only 16% is consumed locally.
“CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators. Mother station investments have totalled over $175 million in the past year, with 65 new licences issued.”
The release also dismissed the claim that the conversion kits were unsuitable for old vehicles insisting that experience in Egypt, India, and Iran indicated that old vehicles operate better and more efficiently on CNG than they would on petrol.
Responding to claims that the government was not leading by example on the initiative.
PCNGi said “The conversion programme started with government institutions like the Nigerian Army and the Nigeria Police – through the Police Trust Fund. The programme has now expanded to other MDAs like the Federal Road Maintenance.”
VON
