The Presidential Compressed Natural Gas Initiative (P-CNGI) has introduced a new framework designed to improve the nationwide distribution of compressed natural gas (CNG), in collaboration with the Nigerian National Petroleum Company Limited (NNPC Ltd.), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Gas Aggregation Company of Nigeria (GACN).
Focusing specifically on the transportation sector, the Mobility-CNG Supply Framework has been carefully designed to ensure a steady, affordable, and sufficient supply of CNG throughout the country.
During the launch and implementation event held on Tuesday in Abuja, P-CNGI Programme Director Michael Oluwagbemi shared that the framework offers a clear, concessionary pricing model, as reported by the News Agency of Nigeria (NAN). He stated that this model takes into account upstream and midstream costs while ensuring that prices remain reasonable for consumers.
The Presidential Compressed Natural Gas Initiative (P-CNGI) highlights that the Mobility-CNG Supply Framework will provide a cost-effective, consistent, and sufficient autogas supply to users across the country,” the NAN report noted in part.
Also, the P-CNGI is executing the framework in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.), and Gas Aggregation Company of Nigeria Ltd. (GACN).
Oluwagbemi noted that by promoting the use of local petrol, boosting the use of cleaner fuel alternatives, and cutting transportation prices in the post-subsidy scenario, the framework bolsters Nigeria’s significant energy reforms.
Approved by the NMDPRA in 2024, this measure also stops autogas allocations from being diverted to industrial or power generation purposes, and it also curbs exploitation.
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The P-CNGi Program Director praised the remarkable expansion of the initiative’s infrastructure, noting that the number of stations has grown significantly from 20 to over 65.
In the third week of June, two new BOVAS stations were inaugurated in Ibadan, and plans are underway to open an additional twenty-eight stations soon to accommodate the increasing demand. The framework also incorporates regulatory safeguards and supply chain management.
Active discussions are underway with upstream producers, alongside collaboration with the NUPRC to unlock underutilized gas assets. A fleet of high-capacity CNG trailers is set to transport gas from mother stations to daughter stations and retail outlets.
According to Omolara Obileye, the Strategy and Business Development Coordinator at P-CNGI, the initiative has attracted over $500 million in investments and has trained more than 2,500 technicians for vehicle conversions.
She noted that P-CNGI currently operates in 21 states, with an additional 10 expected to join in the upcoming months. This growth is anticipated to reduce petrol demand and create thousands of jobs throughout the autogas value chain.