Oil & Gas
THE Compressed Natural Gas (CNG) Conversion centres increased to 158 in 2024 from seven in 2023, indicating an increase of more than 2,000 percent.
Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), Engr. Michael Oluwagbemi, disclosed this during a panel discussion themed From Policy to Practice: Strengthening Domestication for Economic Development at the 13th Practical Nigerian Content Forum in Bayelsa state.
According to him, Pi-CNG plans to increase the number of conversion centres to 1,000 more to meet the increasing needs of CNG stakeholders.
He said: “The goal of increasing the number of conversion centres is to facilitate converting petrol cars to compressed natural gas (CNG) vehicles, creating a robust market for CNG stations.
“The conversion cost, including kits and services, is approximately ₦1 million per vehicle. With a target of converting five million vehicles, this represents a ₦5 trillion market opportunity.”
He also said: “We are planning to establish a CNG manufacturing hub in Ajaokuta, Kogi State, where 10 hectares of land have already been secured. Five key components of the kits, such as flexible pipes, filters, and valves, can be manufactured locally.
“Even the Electronic Control Unit (ECU) can be developed through reverse engineering. We are already in discussions to make this a reality.”
Oluwagbemi called on the Nigerian Content Development and Monitoring Board (NCDMB) to collaborate on the development of the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS).
He said plans for assembly plants dedicated to producing fully CNG-powered vehicles and outlined Pi-CNG’s commitment to converting 500,000 commercial vehicles.
The initiative is also prioritizing capacity building, with a target of establishing 1,000 training institutes nationwide.
“We are working with the Nigerian Institute of Transport Technology (NITT) to certify trainees and ensure that local mechanics have the skills to handle CNG conversions and maintenance.
“We aim to create opportunities for mechanics and entrepreneurs to own CNG maintenance or conversion stations.
“We are witnessing queues at CNG refueling stations in some states, indicating a growing demand. Independent filling station owners are now considering retrofitting their facilities or adding CNG refueling units to meet this demand.
“The cost of setting up a CNG refueling station, initially about $600,000, is being mitigated by the introduction of composite refueling units.
“These portable units, modeled after technologies used in India, are being deployed in Nigeria and offer faster refueling capabilities.”
Oluwagbemi disclosed that Pi-CNG is pairing CNG refueling units with compression facilities to create a direct supply chain from gas sources while expressing optimism about attracting upstream gas producers and midstream operators to the growing CNG space in Nigeria.
He said: “We are creating a beautiful interplay in the CNG value chain, despite initial challenges.
“Pi-CNG has entered into an equity agreement with a company in Ajaokuta to develop a mini-LNG facility, with support from the Bank of Industry and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Approvals are currently underway.”
vanguard
A.I
Dec. 5, 2024
Tags: Engr. Michael Oluwagbemi
