Femadec Express, NIPCO Gas Partner On CNG AutoGas To Enhance Service Delivery

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NIPCO Gas Limited is partnering with Femadec Express on the business of distribution of Compressed Natural Gas (CNG AutoGas). Both companies recently entered into a partnership that will see Femadec Express leverage on NIPCO Gas capacity and CNG AutoGas distribution network in several states.

In line with the Federal Government Agenda to increase the utilization of cleaner fuels within Nigeria, FEMADEC Express has actively invested in, and developed projects & schemes that align with this agenda; This is also part of efforts to actualize the Federal Government’s Autogas policy which was launched by President Muhammadu Buhari in December 2020.

NIPCO Gas currently has Retail CNG AutoGas dispensing facilities at Ibafo, Benin, Ajaokuta, Okene, and Abuja – where it dispenses AutoGas to over 8,000 vehicles; it is the only Nigerian company that has “State of art” workshops at Benin City, Ibafo and Abuja, for conversion of vehicles to dual fuel usage – it has an inventory of conversion kits for all makes of vehicles. Plans are underway to increase its CNG AutoGas to add 40 AutoGas stations to its footprint. Most of these stations will include workshops for the conversion of vehicles. In the near term, cities such as Lekki – Epe Exp (Lagos), Kano, Kaduna & Port Harcourt will have similar.

Femadec Express is wholly owned by the Femadec Group. It is a Compressed Natural Gas (CNG) powered mass transportation and logistics service company, and it utilizes innovative technologies to provide these sustainable services which are in line with the United Nations Sustainable Development Goals.

Femadec Express services include Mass Transportation services that include BRT operations provision, interstate travel, hailing services, and logistics & delivery services to name a few. Its primary operational locations are FCT Abuja, Lagos, and Ibadan (Oyo State). On May 5th 2022, starting with 20 buses manufactured by Hyundai in South Korea, Femadec Express commenced the deployment of CNG-powered mass transit buses in Abuja.

What is AutoGas:

Natural Gas is a natural hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other alkanes, and sometimes a small percentage of carbon dioxide, nitrogen sulphide. It is treated to remove impurities to make it fit for automotive and industrial use.

Natural gas can be introduced in the pipeline (Piped Natural Gas -PNG) or compressed (Compressed Natural Gas – CNG) into CNG at 250bar and transported via trucks; or can be liquefied into LNG at -162C.

Natural gas is environmentally friendly and cheaper when compared to fossil fuels such as Diesel (AGO) and Premium Motor Spirit (PMS). It Is also abundantly available in Nigeria, and hence, a readily available alternative to the costly imported fossil fuel.

Natural Gas Vehicle (NGV) Evolution in Nigeria:

CNG AutoGas was first introduced by the Nigerian Gas Company in 1989 with 2 stations in Warri and Benin equipped with AutoGas dispensing infrastructure. The project recorded notable successes as several vehicles were converted to run on Natural Gas, however, the unavailability of CNG stations to service the converted vehicles were noted as a downside to the project.

In 2007, the Federal Government a granted license to NIPCO Plc to implement the pilot project in Benin city, Edo state.

NIPCO Plc, partnered with Nigeria Gas Company Limited – which led to the formation of a JV company – ‘NIPCO Gas Limited’. NIPCO Gas successfully implemented the AutoGas pilot project in Benin city with 9 operational CNG stations catering to over 4,300 NGVs in Benin and 700 NGVs in Ibafo, Ogun State. It quickly developed the capacity to convert PMS engine-powered vehicles TO CNG AutoGas vehicles with the use of a conversion kit. As such it is not only factory-produced vehicles that can enjoy the benefits of using Natural Gas, NIPCO can convert PMS/AGO vehicles to CNG vehicles.

Recall that in December 2020, President Muhammadu Buhari performed the virtual rollout of the AutoGas program called the National Gas Expansion Programme. The program, which involves the conversion of fuel-powered cars from petrol to gas, is aimed at deepening domestic usage of natural gas in its various forms. The programs are so in line with the Federal Government’s plan to make gas the first-choice source of cheaper and cleaner energy. Also, as the Federal Government seeks to wean itself of subsidy payments for PMS with gradual deregulation as it did with Diesel/AGO, CNG AutoGas has increasingly become a more desirable energy fuel. Ultimately, the AutoGas policy will help cushion the impact of petrol subsidy removal, which gulps trillions of naira yearly.

Benefits of AutoGas: ENVIRONMENTAL: Natural Gas is relatively safer, cleaner, and more economical.

Low/ Narrow Flammability Limit: This refers to a fixed temperature and pressure that can lead to flame propagation, detonation, or an explosion. Fuel or combustible concentrations outside limits are considered to be non-flammable. CNG has a narrow range (5%-15%) of flammability. It means that if CNG concentration in the air is below 5% or above 15%, it will not burn.

Lighter Than Air: In cases of leakage, CNG just rises, disperses into the atmosphere, and mixes in the air easily and evenly.

High Auto Ignition Temperature: CNG is less likely to auto-ignite on hot surfaces since it has a high auto-ignition temperature (540 degrees Celsius). This high ignition temperature and limited flammability range make accidental ignition or combustion very unlikely. PMS has an auto-ignition temperature of 316 degrees Celsius

High-Pressure Storage: CNG fuel cylinders are significantly stronger than gasoline tanks. Natural gas fuel tanks are up to a half-inch thick and are made of steel or a composite designed to be stronger than steel, and valves are made to handle high pressure.

Cylinder (Storage) Design: The design of CNG vehicle cylinders is subject to several “severe abuse” tests such as heat and pressure extremes, gunfire, accidents/collisions, and fire. The systems are also fitted with valves and other safety devices to prevent leakage and eliminate the risk of an explosion — actually making them safer than the legal requirements stipulate.

Better Air Quality:  Substantial reduction in emissions, resulting in improved air quality. The use of natural gas provides a path to near-zero carbon emission. It is a relatively clean fuel resource. There is no acrid smell from exhaust gases, no heavy metal additives necessary to increase knock rating, and no carcinogenic substances. Also, when compared to both AGO and PMS, there are significant reductions in Carbon Monoxide (CO), Non-Methane Hydrocarbons, Nitrogen oxide (NOx), and Carbon Dioxide (CO2).

Benefits to The Federal Government.

Promote jobs by creating expansion of the gas infrastructure.

Reduces dependence on imported oil, as such less foreign exchange is expended on Oil importation. Reduces oil subsidy burden on the Federal Government. Enables utilization and optimization of Domestic Gas thereby expanding the economy.

Reduces road maintenance costs and road congestion because natural gas can be supplied via pipelines.

Benefits to The Vehicle/Fleets Owner.

It is more economical as there is the cost savings element, Lower maintenance cost, It is cleaner, as such it reduces the owner’s carbon footprint, It is a healthier and safer fuel option, Natural gas is less prone to theft, unlike liquid fuels.

Other advantages of Natural gas are: It is lighter than air and therefore is safer since it dissipates upon leakage, Most available solution for the clean, secure and sustainable future, Cost-effective solution for mass transit and mass fleet, Ultimately, CNG produces fewer greenhouse gases than PMS and diesel;

It is less expensive than PMS or diesel which makes it even more attractive for fleets, CNG is in abundant supply right here in Nigeria, all conversion costs are recoverable within 12 months to 24 months.

NGV/AutoGas Applicability

Airports – Terminal buses, shuttle buses, Taxis, Short delivery pick-up Vans, personal vehicles, a large fleet of commercial vehicles,  School Buses, Transit Buses, Trucks, and other Long Haulage vehicles.

Heavy-duty vehicles used in Agriculture, construction, utility, etc

Nigeria is blessed with an abundance of domestic Natural Gas, there is presently over 200 Tcf in proven Gas reserves made up largely of associated gas. This is expected to hit 600 Tcf as more deliberate gas explorations are undertaken.

There are over 12 million vehicles in Nigeria that run on petrol and diesel, and less than 10,000 have been converted to NGV. As such, there is so much room to grow. The market is big. Nigeria is a very mobile country: There is a very significant interstate movement of goods and also human traffic.

Also, The Federal Government’s drive to domesticate Natural Gas utilization by way of the National Gas Expansion Program (NGEP), the heavy subsidy burden on PMS importation on the Federal as a result of increasing crude oil prices and high FX rates acts as incentives for alternative and cheaper fuel.

Within the next year, NIPCO Gas plans to convert over 10,000 vehicles in several locations.

In Partnership with NNPC/NGMC, NIPCO Gas Limited is expanding its Vehicle CNG retail stations all across Nigeria with the addition of 45 stations. The project is expected to be completed within FY 2022 with investments of over USD 77M. Phase one of this project has already been concluded.

As Femadec plans to expand its fleet to 100 buses in 2022 and to expand its route to other regions of Nigeria, NIPCO Gas is also tailoring its operation and infrastructural expansion to align with Femadec’s. This collaboration will enable an enhanced service delivery that will in no small measure, contribute to the achievement of the Nation’s Expansion Program and the success of her AutoGas policy.

 

 

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