KEY POINTS
- NIPCO Gas and NGML are jointly constructing 20 new CNG stations across Nigeria.
- CNG mother stations at Lekki and Ore are nearing completion as distribution hubs.
- An 80km Sagamu-Ibadan gas pipeline targets completion by June or July 2026.
NIPCO Gas Limited is constructing 20 new compressed natural gas stations across Nigeria in a joint venture with the Nigerian Gas Marketing Limited, the company’s managing director said, as the firm moves to deepen gas-powered mobility and support the federal government’s post-subsidy energy agenda.
Nagendra Verma disclosed the expansion plans during a media engagement at the company’s Lagos office, outlining a strategy that goes well beyond just adding more fuelling points to the national map.
“The nationwide expansion is strategically designed to ensure broader coverage along key transport corridors and high-traffic urban centres, thereby improving accessibility and affordability of CNG for commercial vehicles, fleet operators, mass transit systems, and private motorists,” Verma said.
Mother Stations and the Distribution Network
Central to NIPCO’s rollout strategy are two mother compression stations at Lekki and Ore, both of which are at advanced stages of completion. These facilities will anchor a mother-daughter distribution model, pushing compressed gas to daughter stations and industrial customers in areas that sit far from pipeline infrastructure.
Verma stressed that the model solves a key structural problem in Nigeria’s gas distribution ecosystem. Rather than limiting access to pipeline-connected locations, NIPCO plans to use the compression hubs to reach commercial fleets and urban transport operators who currently depend on petrol or diesel.
The company also expects the expansion to generate jobs, cut transportation fuel costs and reduce carbon emissions across the mobility value chain.
The Sagamu-Ibadan Pipeline
Beyond the CNG stations, NIPCO Gas is constructing an 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan under a mandate from the Nigerian National Petroleum Company Limited. Verma further said the project targets completion in June or July 2026 and will improve gas supply to industries and commercial consumers across Ogun and Oyo states.
“This critical infrastructure will enhance manufacturing competitiveness and reduce production costs for industries currently dependent on alternative fuels,” he also said.
Additionally, NIPCO is developing gas distribution infrastructure from Sagamu to Abeokuta to further deepen penetration across the South-West corridor, a region the company views as central to its near-term growth strategy.
