L-R: Managing Director, NNPC Gas Marketing Limited, HRM Justin Ezeala; Representative of the Ogun State Governor and State Commissioner of Environment, Mr. Ola Oresanya; Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Lagos State Governor, Babajide Sanwo-Olu; GCEO NNPC Ltd, Mallam Mele Kyari; Executive Vice President, Gas Power & New Energy, NNPC Ltd, Mr. Olalekan Ogunleye; Executive Vice President Upstream, NNPC Ltd, Mrs. Oritsemeyiwa Eyesan and a guest during the commissioning of 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Ilasamaja area of Lagos State, on Thursday.

To provide alternative fuel sources and alleviate the effects of petrol subsidy removal, the Federal Government has inaugurated a 5.2 million standard cubic feet per day (MMSCFD) Compressed Natural Gas (CNG) plant in Lagos. The plant, located in the Isolo Industrial Area of Ilasamaja, was officially commissioned on Thursday by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.

Under the theme “From Gas to Prosperity: CNG for All,” Minister Ekpo highlighted the significance of this development as a crucial step towards affordable, sustainable, and secure energy sources in Nigeria. He noted that 2024 marks a historic year for the nation, largely due to President Bola Tinubu’s bold decision to eliminate fuel subsidies and promote Liquefied Petroleum Gas (LPG) usage.

“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” Ekpo stated.

CNG, known for its clean-burning properties, is globally recognized for reducing nitro-oxide and soot emissions. The Minister pointed out that CNG passenger vehicles emit 5-10% less CO2 compared to gasoline-powered vehicles, making it a mature and environmentally friendly transport fuel.

The Group Chief Executive Officer (GCEO) of NNPC Limited, Mallam Mele Kyari, emphasized NNPC’s commitment to energy security and expanded access to CNG. He announced a Final Investment Decision (FID) with Axxela Limited to deliver six CNG mother and service station plants, each with a 5.2 MMSCFD capacity, across Nigeria’s six geopolitical zones and the Federal Capital Territory (FCT). This initiative complements NNPC Retail’s phased deployment of CNG across over 100 stations nationwide.

Kyari highlighted that the Ilasamaja CNG station is part of NNPC’s strategy to enhance domestic gas supply and utilization. The Petroleum Industry Act (PIA) mandates NNPC to promote domestic gas use, reinforcing its commitment to deploying critical gas infrastructure nationwide.

“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilize our gas resources for industrialization, power generation, and economic prosperity for all,” Kyari affirmed.

Lagos State Governor, Babajide Sanwo-Olu, praised the CNG plant’s establishment as aligning with his vision for economic development, job creation, and industrialization. The State Government plans to deploy 2,500 conversion kits and over 2,000 new CNG buses by the end of the year.

Representing Ogun State Governor Dapo Abiodun, State Commissioner of Environment Mr. Ola Oresanya, underscored Ogun State’s support for CNG conversion capacity building to ensure sustainability and economic development.

Engineer Michael Oluwagbemi, Chief Executive of the Presidential CNG Initiative, lauded the plant’s commissioning as evidence of President Tinubu’s dedication to sustainable energy solutions.

Bolaji Osunsanya, CEO of Axxela, thanked stakeholders, particularly NNPC, for their vision and collaboration, stressing that the plant represents a golden opportunity to deliver cleaner, cheaper energy to Nigerians.

The NNPC CNG Station in Ilasamaja, with its 5.2 MMSCFD capacity, can fill about 3,700 cars or 600 trucks/buses daily, supporting both vehicles and industrial gas needs. This state-of-the-art facility was built in partnership between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (an Axxela company).