The Presidential Compressed Natural Gas Initiative (PCNGi) has revealed that it expects to convert about one million vehicles to CNG which would save about $4.4 billion (N6.6 trillion) annually in petrol importation.
The Coordinator, Regulations, Compliance and Facilitation, PCNGi, Engr. Zayyan Tambari made the disclosure in a presentation at a Co-Creation Session on Nigeria Gas Vehicle Monitoring System, NGVMS, in Abuja yesterday.
Tambari said about $890 million investment would be required to develop infrastructure for the alternative fuel, adding that the government expects CNG to replace 20 percent of the current 50 million litres of petrol consumed in the country daily.
Speaking earlier, the Minister of State Petroleum Resources (Gas), Hon. Ekperikpe Ekpo said the government was determined to ensure that Nigeria reaps the full benefits of its gas resources.
Mr. Ekpo who was represented at the event by Engr. Abel Nsa, pointed out that to ensure a safe usage of CNG as fuel for vehicles, specific materials and tools would be needed across the value chain.
On his part, the Executive Director, Distribution System, Storage and Retailing Infrastructure, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr. Ogbugo Ukoha said the agency in its quest to promote the use of gas has gazzetted two regulations that addressed technical framework and specifications for the development of gas retailing infrastructures and fuel quality standard.
Ukoha explained NMDPRA is pushing petrol station owners to set up CNG points in their facilities, adding that no new licence would be granted without a point to dispense CNG.
Earlier, the Project Director/Chief Executive, PCNGi, Engr. Michael Oluwagbemi explained that the transition to natural gas usage is good for the country as gas is cheaper, cleaner, safer and more sustainable for the economy.
Oluwagbemi however pointed out that the transition also provided safety concerns that both the government and the operators to address and prepare for.
"to achieve this, we need the cooperation of all members of the ecosystem right from the point of inspection or conversion to the point of use, right from the point of manufacturing or importation of any part to the point of installation, there is a need that we have a very strong regulatory regime", he stressed.
