IPMAN wants CBN’s Gas Expansion Fund for Cars, Keke, Trucks
IPMAN has written to the Federal Ministry of Finance to ask that the CBN release funds meant for the gas expansion programme, to power cars, kekes, and trucks belonging to Nigerians.
The Association says it is ready to deploy natural gas dispensers to 30,000 filling stations across the country. The NGEP has been in play since 2020.
The national leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed its intention to contribute to the fast-tracking of the National Gas Expansion Program (NGEP), which is a gas conversion policy initiated by the Buhari led administration in 2020.
IPMAN had written to the Federal Ministry of Finance stating that it was ready to provide natural gas dispensers to a specified number of filling stations across the country. A part of the letter read: “We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Limited, have an agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles.”
“Furthermore, CNG emits 30 to 60% fewer greenhouse gasses than petrol and diesel, making it more appealing to attract additional financing from international and regional development finance institutions that are disposed to supporting natural gas utilisation projects compared to petrol refineries.
“What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits.
“Without a large pool of CNG customers, IPMAN will not be able to raise the funds required to set up CNG filling stations.
“We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can in a matter of a few months cushion the impact of petrol subsidy removal and significantly reduce the need for foreign exchange to import petrol.
In 2020, the Federal Government introduced the National Gas Expansion Program (NGEP).
The policy was introduced to make CNG the fuel choice for transportation and liquefied petroleum gas (LPG) the fuel choice for cooking, captive power, and small industrial complexes.
The framework for the implementation of the intervention facility for the NGEP established by the Central Bank of Nigeria (CBN) introduces the N250 billion intervention facilities to help stimulate investment in the gas value chain.
The objectives of the facility include improving private financing access, stimulating investments in infrastructure, adopting CNG and LPG, developing gas-based industries such as petrochemical and boosting employment.
What you should know
During the 2023 Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum held last week in Abuja, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, said that the company is playing a lead role in implementing the National Gas Expansion Program (NGEP).
