The Nigerian Federal Government is set to establish 500 Compressed Natural Gas (CNG) refueling stations across the country over the next three years as part of its initiative to transition to cleaner and more affordable energy sources, while also reducing reliance on petrol. This initiative follows successful negotiations between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Chinese equipment manufacturer, Endurance Group.
The newly formed partnership will create a government-backed Special Purpose Vehicle (SPV), named the Compressed Natural Gas Auto Mobility Infrastructure Company, which will oversee the deployment of the CNG refueling stations and the development of related infrastructure, including Liquefied Compressed Natural Gas (LCNG) supply systems. This project aims to address infrastructure gaps in Nigeria’s CNG value chain, enhance logistics, and improve access to refueling points, thereby alleviating long queues at existing stations.
The initiative is part of the broader Presidential Compressed Natural Gas Initiative launched in 2023, which seeks to reduce the country’s dependence on Premium Motor Spirit and Automotive Gas Oil. Government officials emphasize that promoting auto-CNG is vital for stabilizing transportation costs, enhancing energy security, and reducing the demand for foreign exchange for fuel imports, especially given Nigeria’s vast natural gas reserves.
The project aligns with President Bola Tinubu’s energy security agenda and is expected to create job opportunities within the domestic gas value chain. The Chief Executive Officer of Endurance Group, Eric Lin, highlighted that the SPV aims to establish a comprehensive refueling, maintenance, and logistics ecosystem, which will ensure a reliable supply of gas through a virtual pipeline network.
Overall, the rollout of CNG infrastructure is anticipated to significantly improve access to gas-powered transportation in Nigeria, thereby contributing to the country’s transition to cleaner energy sources and reducing its dependency on imported fuels.
