FG targets 500 compressed CNG stations nationwide in three years

The federal government has announced plans to establish 500 compressed natural gas (CNG) stations across Nigeria over the next three years, aimed at accelerating the country’s transition to cleaner and more affordable fuels.

In a statement on Sunday, Oluwole Adama, Executive Director of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), said the initiative will reduce Nigeria’s reliance on petrol. The plan follows discussions between the MDGIF and Endurance Group, a major Chinese manufacturer.

Adama explained that the talks centred on creating a government-backed special purpose vehicle (SPV) promoted by the MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.

“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain,” he said.

“Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”

Adama added that the project will reduce long queues at existing CNG stations by expanding access to refuelling points and improving logistics and distribution systems.

Also commenting on the initiative, Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the project supports President Bola Tinubu’s vision of strengthening energy security by promoting wider adoption of auto-CNG and reducing Nigeria’s dependence on petrol and diesel, especially in the transportation sector.

“This initiative complements the administration’s wider economic reforms by promoting cleaner and more affordable energy options for Nigerians,” Subair said. He noted that the project would create new jobs across the domestic gas value chain.

Eric Lin, CEO of Endurance Group, said the SPV aims to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG equipment to certified operators.

“It will also ensure a consistent and reliable gas supply through a world-class virtual pipeline network,” Lin added.