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NIPCOGas reduces CNG price to N200/scm

In a bid to popularise Compressed Natural Gas (CNG) as a viable alternative to Premium Motor Spirit (PMS) in Lagos, NIPCO Gas has announced a significant reduct...

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In a bid to popularize Compressed Natural Gas (CNG) as a viable alternative to Premium Motor Spirit (PMS) in Lagos, NIPCO Gas has announced a significant reduction in CNG prices to N200 per standard cubic meter. This move is expected to ease the pressure on filling stations, which are currently grappling with long queues.

The company has completed four CNG stations in Lagos, set to commence commercial operations by the end of April. This milestone marks the first of its kind in the state. According to Nagendra Verma, Managing Director of NIPCO Gas Ltd, the company has been actively involved in AutoCNG development and expansion since 2009.

Verma assured that the firm's focus on sustainability would ensure a steady supply of CNG once the facilities are commissioned. Presently, CNG is priced at N200/scm for cars, taxis, and tricycles, significantly lower than the prevailing petrol price of N610 per liter in Lagos and N670 per liter in Abuja. For heavy commercial vehicles, CNG is priced at N260/scm in Lagos and N290/scm in Abuja, far below the corresponding prices of N1250 per liter and N1300 per liter, respectively.

Verma expressed confidence that with the current government's support, AutoCNG would become the preferred fuel choice for Nigeria, reducing the country's dependence on imports and foreign exchange. He emphasized that the AutoCNG project is a national cause that would benefit the masses and motorists by reducing the high cost of fuel.

The company's strategy has been to gradually expand its AutoCNG network across Nigeria, starting from Benin City and extending to Ibafo, Kogi State, Abuja, Ibadan, and Oron. Currently, NIPCO Gas operates 15 AutoCNG stations nationwide, enabling CNG-powered vehicles to travel from Lagos to Abuja and Kaduna, with refueling stops at the company's stations along the way. The company is poised to further expand its network, ultimately allowing motorists to travel seamlessly across Nigeria.

In line with the government's directives, NIPCO Gas has partnered with the Nigerian National Petroleum Company Limited (NNPCL) to drive the expansion of AutoCNG stations across various states in Nigeria.

NIPCO Gas is deeply committed to its partnership with NNPCL, as mandated by The Presidency, and acknowledges the immense responsibility this brings to benefit the Nigerian masses and government.

In a statement, Verma expressed the company's gratitude for the trust placed in them and vowed that they will spare no effort to bring the AutoCNG expansion plan to fruition, ultimately alleviating the suffering of millions of citizens.

Under this partnership, NIPCO Gas plans to construct 35 AutoCNG stations in phases, with 19 locations already identified and approved by relevant authorities, including NMDPRA.

The company plans to complete four CNG stations in Lagos by April/May 2024, with support and guidance from various stakeholders, including PCNGI, NMDPRA, SON, NNPC, and the media.

Verma emphasized that gas distribution and AutoCNG projects require substantial investment and an unwavering commitment to persevere, but with the support of all parties, including the Presidency, he is confident that the company will achieve its goals.

In addition to AutoCNG, NIPCO Gas is expanding its gas transportation pipeline to Ibadan and its gas distribution network in Lekki Free Zone. These projects, while capital-intensive and time-consuming, will ultimately increase the utilization of indigenous gas, reduce dependence on imported fossil fuels, and ease pressure on foreign exchange reserves.

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