FG says CNG Production Plant Underway
The Minister of State, Petroleum Resources (Gas) Ekperikpe Ekpo has said that days of scarce and costly cooking gas were numbered as plans were afoot to establish many Compressed Natural Gas (CNG) production plants.
This comes as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) through its Midstream and Downstream Gas Infrastructure Fund (MDGIF) has signed a Memorandum of Understanding (MOU) with Ibile Oil and Gas Corporation for the development of infrastructure for the Compressed Natural Gas (CNG).
The agreement signing ceremony was held in Abuja recently at the instance of Ekpo.
He said the deal will help the firm accelerate the penetration of Compressed Natural Gas (CNG) to drive the transport sector.
According to him, owing to the removal of the Premium Motor Spirit (PMS) petrol subsidy, the need for an MoU for an alternative fuel has become expedient.
His words: “It is an important moment in the history of this ministry and today, I have witnessed the signing of MoU between the NMDPRA with IBILE Oil and Gas Company.
“This will help them to develop the infrastructure for CNG.
And of course, with the withdrawal of subsidy the alternative means now is the natural gas.
“So what they are coming in to do and the essence of this agreement or MoU is to fastrack the penetration of natural gas in the form of CNG to drive the transport sector.”
On when the agreement will become operational, he said it took immediate effect, assuring that hurdles that may help slow down the project would be dismantled.
Ekpo said, “We have started everything today. It is left for the party concerned to perfect everything and I don’t think it will take a longer time.”
He said it was the importance of the agreement that compelled him to return from Port Harcourt, where he went for the event of the completion of the Port Harcourt Refinery yesterday.
He vowed to ensure that he drives the parties to keep to the schedule in the agreement because Nigerians are eager to see the alternative fuel to petrol.
The minister said, “You can see the importance of this meeting while we are having it today, I was in Port Harcourt, I had to drive in and the MD decided to stay behind.
“All the person’s, the Authority Chiefs stayed behind to make sure that this thing happened today.
So, I want to make sure they will key into the speed we are doing it today.
“The importance of this event is to make sure they finish it on schedule. Nigerians are waiting for this.”
Meanwhile, MDGIF, Executive Director, Mansur Kuliya, said the agreement was in consonance with the mandate to provide incentive for CNG.
He noted that aside from having the duty to support President Bola Ahmed Tinubu agenda, the Fund has the mandate to deepen the domestic gas market.
According to him, the agreement was an indication of similar projects that are underway.
Kuliya said, “I am very excited and this is just in line with the incentive for CNG.
Speaking, the Ibile Oil & Gas Corporation, Managing Director, Ms Doyin Akinyanju, noted that the firm was fully prepared to hit the ground running with the signing of the agreement.
The Chief Executive Officer said apart from reducing the cost of transportation, the agreement will culminate in the reduction of the carbon footprint.
She revealed that the Lagos State Governor is very keen that the project will commence between now and the first quarter of 2024.
She said it will take-off with government-owned fleets before extending the services to commuters.
“It is for the government fleets as well as commuter buses so that the commuter buses people can actually be driving and moving around at lower cost,” she said.
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She noted that “We are rolling out mobile stations so that very quickly people can drive into stations and fill up from there.”
According to her, the project will start with the target of fast tracking gas for transport and power in Lagos State.
She revealed that the company is partnering with the international technical partners who are the manufacturers of the kits.
She further revealed that the firm has also partnered with stations in terms of conversion of the vehicles.
She revealed that the deal will become fully operational by mid next on a worst case scenario.
Source: The Sun
