FG can save $1.5bn annually using natural gas vehicles

With 1 million vehicles on Natural Gas, the Federal Government will save foreign exchange of about $1.5 billion required in purchasing four billion litres of Premium Motor Spirit (PMS) annually.

The Managing Director, NIPCO Plc, Sanjay Teotia stated this at the Nigerian Gas Association 2017 Business Forum, held recently in Lagos.

“Beside the environmental benefits from Natural Gas Vehicles (NGVs), developing the Nigerian NGV industry will be a profitable proposition, NGVs in Nigeria has huge potential for creating jobs and a large market for gas, thereby providing alternatives to petrol usage and saving foreign exchange for the Nigerian government,” he said.

“Liquid fuels are being imported, Premium Motor Spirit ( PMS) is subsidized, NAIRA weakening adds to subsidy burden while Natural gas is abundantly available, which is clean, environmental friendly, safe & economical,” he added.

Speaking further, he said, beside the environmental benefits from NGVs, developing the Nigerian NGV industry will be a profitable proposition. NGVs in Nigeria according to him has huge potential for creating jobs and a large market for gas, thereby providing alternatives to petrol usage and saving foreign exchange for the Nigerian government.

Countries that have adapted NGVs according to him have enacted extensive technical and safety standards for both NGVs & CNG dispensing stations, ISO standards have already been established for design of various components of the NGV fuel system, Filling station equipment such as compressors, storage cylinders adding that Nigeria should adapt these regulatory requirements.

Talking on investment stimulation, he said clear strategic plan to increase the share of natural gas in the Nigerian fuel mix be put in place by the government.

So also strong regime commitment, liberal licensing regime for setting up CNG dispensing stations, investments in widespread availability of natural gas through well-established pipeline distribution network Government policies to waive off custom duties on NGVs.

So also subsidy to vehicle owners to convert their vehicles, introduce NGVs in public transportation system – taxi fleet, mass transit buses, mandate use of NGVs in all departments of Local/State/Federal governments.