Luka Binniyat
29 August 2006
The Nigerian Gas Company (NGC) declared, last Friday, that within the next twelve months, cars used in Nigeria would start running on Compressed Natural Gas (CNG) in view of the escalating cost of petrol, saying it has sent some of its staff to Argentina to be trained on how to establish and run NGC stations.
This is even as it announced that the Power Holding Company of Nigeria (PHCN) is owing it a total debt of N8.01 billion forming (about 60% of debts owed it), but said it would continue to sell gas to the company now broken into 18 independent entities, while it strives to convert the debt into equity in any of the 18 splinter companies of the PHCN.
Speaking at its 13th Annual General Meeting (AGM) for 2003 and 2004 in Abuja, the Managing Director, NGC, Engr. C.O Ogiewonyi, said that car owners would be encouraged to convert their engines such that they could use either Gas or Petrol.
"We are establishing the first Natural Gas Filling Stations at Warri-Benin-Lagos expressway before December this year", he said, "we believe it is relatively cheaper than petrol and diesel and it is environmental friendly".
In Pakistan, more than 1,000,000 vehicles have been converted to CNG and 985 CNG stations are operational while another 200 are under construction in different parts of the country by July, 2006. According to International Association for Natural Gas Vehicles (IANGV) statistics, Pakistan is ranked at no.3 in the CNG using countries after Argentina and Brazil.
The issue of customer indebtedness has been a major concern to NGC", said Chief Solomon Agiemwonyi, Chairman, Board of Director of the NGC.
"At the end of May 2006", he said, "total debt owed NGC was N13.398 billion, made of N10.22 billion owed by federal government owed companies and N3.176 billion by the private sector.
PHCN alone owes 8.001 billion representing 60% of the total debt", he said.
He, however, assured Nigerians that its delay in the repairs of the Chanomi Gas Pipeline in the restive creeks of Warri blasted by militant, last February, had nothing to do with the huge debt, but the combative posture of the youths from the area who have refused to allow the contractor asses to the gas pipeline
He told the Board of Directors and Shareholders of the NGC that NGC recorded a volume throughput of 188.59 billion cubid feet (Bscf), representing an increase of 5.6% over that of 2003 sales throughput of 177.95 Bscf and 4.76% increase over planned annual throughput of 179.61 Bscf of the year.
"For this volume in 2004", he said, "we realized a total revenue of N8,376 billion representing 147.99% of the annual plan of N5,660.18 billion.", he said.
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