The Project Director and Chief Executive Officer (CEO) of the Presidential Compressed Natural Gas Initiative (PCNGi), Michael Oluwagbemi, has disclosed that the Federal Government (FG) has invested over $450 million in the development of Nigeria’s Compressed Natural Gas (CNG) value chain.
Oluwagbemi, who was represented by Mr. Tosin Coker, the Head of Commercial at PCNGi, made this announcement during his address at the 9th Edition of the Nigeria Energy Forum (NEF2024) in Lagos on Monday, as reported by the News Agency of Nigeria (NAN).
He emphasized that the investment spans critical areas of the CNG infrastructure, including the establishment of mother stations, daughter stations, refueling stations, and conversion centers across the country.
“The Presidential Compressed Natural Gas Initiative (PCNGi) on Monday said that it had invested more than 450 million U.S Dollars in the Compressed Natural Gas (CNG) value chain,” the NAN report read in part.
It added, “According to the PCNGi CEO, the amount goes into things like mother stations, daughter stations and refueling stations as well as conversion centres which are starting to spring up across the nation.”
Oluwagbemi revealed that the initiative has successfully converted over 10,000 vehicles from petrol to CNG. He further highlighted that by 2027, the initiative aims to convert more than one million petrol-powered vehicles to CNG.
Addressing concerns about the safety of CNG-powered vehicles, the PCNGI CEO assured Nigerians that precautionary measures had been put in place in collaboration with various government agencies to ensure the safety of vehicles using CNG.
What you should know
Just a few weeks ago, in November 2024, the Presidential Compressed Natural Gas Initiative (PCNGi) announced that it had invested over $200 million in Nigeria’s Compressed Natural Gas (CNG) value chain.
This initial investment was directed toward developing essential infrastructure, including the construction of mother stations, daughter stations, refueling stations, and conversion centers.
- Notably, $175 million was allocated specifically for mother stations, which serve as key distribution points for CNG. Additionally, 65 new licenses were issued to support the expansion of the sector, and 75 new daughter stations were under construction to enhance accessibility across the country.
- However, in December 2024, the total investment surged to over $450 million, according to the latest figures provided by Michael Oluwagbemi, the CEO of PCNGi.
This increase in investment highlights the Federal Government’s continued commitment to the expansion and development of Nigeria’s CNG infrastructure.
SOURCE: NAIRAMETRICS
About The Author
