As the drum for subsidy removal is getting louder and the government appears to be uncertain on how to handle the issue of palliatives, because of opposition from the labour unions, oil and gas industry operators are already drawing the attention of the government to the fact that, there is an immediate alternative to fuel that Nigerians can leverage on if the subsidy is eventually removed.
Already, Nigeria has declared 2021-2030 a decade of gas, if everything it has put in place to achieve that goal are implemented, switching to gas will automatically become the low-hanging fruit that would go a long way to solve the problem of subsidy.
Gas is cleaner, more efficient, and cheaper, and it is affordable by average Nigerians. Nigeria has an abundance gas resources that it can use in place of fuel. All it needs to do is just to ensure that all the necessary infrastructure is put in place.
It is not that the country has not been active in this area of the gas sector, it is just that it needs to be more proactive and ensure that gas takes the driver’s seat as far as fuel is concerned.
The Federal Government has been in partnership with NIPCO Gas Ltd through the Nigerian National Petroleum Company (NNPC), since 2009. The company is a fully owned subsidiary of NIPCO Plc, Nigeria. NIPCO Gas started its operations in 2009 in Benin City by providing natural gas to industries by way of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) and to automobiles by way of AutoGas (AutoCNG). NIPCO Gas is the pioneer company of AutoCNG distribution in Nigeria.
Looking at all that NIPCO Gas has achieved over the years, the managing director of the company, Nagendra Verma, at an interactive session with Energy Editors in Lagos on the operations on the company, advised that there is no better time than this that the government should act and resolve the issue of subsidy permanently in the country by switching to gas
According to Nagendra Verma, presently, NIPCO Gas operates 12 CNG stations in Edo, Kogi, Delta, Ogun state and Abuja FCT. More CNG stations are under various stages of construction and approval in Oyo, Lagos, Akwa Ibom state and Abuja FCT.
“These CNG stations cater to AutoGas requirement of vehicles by providing a cleaner, safer, economical, proven and indigenous fuel. NIPCO Gas presently fuels over 7000 vehicles with AutoCNG. NIPCO Gas has 4 AutoCNG conversion workshops in Edo, Ogun state and Abuja FCT to convert Premium Motor Spirit (PMS) vehicles on AutoCNG. More and more fleet operators are converting their fleet on AutoCNG due to safety, availability and economic reasons, he said.
He said: “Verma pointed out that gas operates approximately 40 kms of pipeline network in Benin City and approximately 50 kms of pipeline network on Lagos Ibadan Expressway and energies industries for their power and process requirements by way of providing PNG. PNG is the most economical, safe and convenient to use.”
The company is in partnership with NNPC Gas Marketing Limited (NGML) and presently constructing approximately 80 kms of pipeline in phased manner from Sagamu to Ibadan which will cater for industries their power and fuel requirements. Pipeline construction work is progressing in full swing presently. First phase of pipeline construction is expected to compete by the end of 2023.
Verma said that the company with NGML is also constructing gas distribution infrastructure in Lekki Free Zone. Pipeline construction within Lekki Free Zone Development Company is in final stage of completion and city gate station is under construction. NIPCO Gas has planned to commission the gas infrastructure and start supplying natural gas to customers in Q2, 2023.
He said that the company believes and expects that the Federal Government’s declaration of 2020-2030 as the “Decade of Gas” with an aim to target gas powered economy of Nigeria by year 2030 bundled with Nigeria Gas Expansion Program (NGEP), will certainly improve the utilization of indigenous fuel, natural gas and play major role in improving Nigeria’s economy.
He believes that deepened utilization of indigenous natural gas by way of PNG, CNG and AutoCNG will certainly help Federal Government in reducing the subsidy burden and also reduce the importation of other fossil fuels thereby enabling the country to save some foreign exchange saving towards
With the intentions of Federal Government to do away with fuel subsidy, natural gas by way of PNG, CNG, and AutoCNG is bound to be a preferred “fuel of choice” due to safety, environment, economic and reasons in Nigeria.
NIPCO Gas feels that increased monitisation of indigenous natural gas will surely contribute heavily to the betterment of economic situation and employment in Nigeria.