KEY POINTS

• In 2024, there are now 158 CNG conversion centers in Nigeria as against just seven in 2023.
• In order to meet demand for CNG powered vehicles, Pi CNG plans to expand to 1,000 centres.
• To train 1,000 mechanics across the country and develop a CNG manufacturing hub in Ajaokuta, Kogi State.

Currently, Nigeria has witnessed a dramatic increase in the number of its conversion centres for Compressed Natural Gas (CNG), which grew from about seven in 2023, to 158 in 2024.

The almost 2,000% surge in CNG adoption serves as a testament to the gathering momentum of the country’s shift towards CNG as a vehicle alternative fuel source.

Speaking at the 13th Practical Nigerian Content Forum in Bayelsa State, Engr, Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), said it was established as a unified transformational platform aimed at facilitating the utilisation of CNG for the national fleet under the framework of the Department of Petroleum Resources’ (DPR’s) Gas Master Plan.

He also disclosed further plans to upgrade to 1,000 centers to accommodate the growing demands of stakeholders.

Pi-CNG’s vision: making a market for CNG

The intention is to help the migratory rate of petrol vehicles to CNG run vehicles, which is indeed the main reason for CNG stations to grow in numbers across the country.

From this market potential should be a ₦5 trillion opportunity that comes from converting five million vehicles to CNG powered units, stated Oluwagbemi. Converting each vehicle, including the kits and services required is estimated at ₦1 million.

Plans of Ajaokuta hub and local manufacturing

However, Pi-CNG is also working on a CNG manufacturing hub project in Ajaokuta, Kogi State where it has secured 10 hectares of land for the project.

The goals of the hub are the local manufacture of some key components of CNG conversion kits like flexible pipes, filters, valves and the Electronic Control Unit (ECU). There are discussions to reverse engineer to make the ECU domestically.

Also, Oluwagbemi called on the Nigerian Content Development and Monitoring Board (NCDMB) to partner in developing the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS) to also encourage the growth of local content and economy.

Local mechanics training and capacity building

Also going in line with its expansion drive, Pi-CNG is building capacity by setting up 1,000 training institutes in Nigeria.

The aim of this initiative is to train local mechanics with training on CNG conversion and maintenance so as they become equipped with the know how to support the growing market.

These trainees will be certified by Pi CNG, in partnership with Nigeria Institute of Transport Technology (NITT), with opportunities to own and operate CNG maintenance and conversion stations as local entrepreneurs.

CNG refuelling stations and increased demand

As interest in CNG vehicles has grown, so have the demands of CNG refueling stations and in some states, the number of refueling stations flourishes.

Now as the demand grows, some independent filling station owners are retrofitting their facilities or adding CNG refueling units.

With the introduction of composite refueling units, the $600,000 startup cost for setting up a CNG refueling station is decreasing. These units, similar to Indian technology, are portable, can be refueled faster and are being deployed across Nigeria.

Future plans for the CNG space and emerging CNG opportunities

To attract enough upstream gas producers and midstream operators into the CNG sector and create a robust supply chain for CNG distribution, Pi CNG is developing.

It has also locked an equity agreement with a company in Ajaokuta to develop a mini-LNG facility, with the backing of the Bank of Industry and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). However, approvals for this project are underway.

Nonetheless, Oluwagbemi is optimistic about the future of CNG in Nigeria’s CNG value chain.