Sweet Crude

December 10, 2012

NIPCO spends N17bn on CNG projects

Nipco Plc, an integrated indigenous downstream operator said it has injected well over N17billion in the provision of Compressed Natural Gas (CNG) infrastructure in a joint venture scheme with the Nigeria Gas Company (NGC), a subsidiary of Nigerian National Petroleum Corporation (NNPC).

The JV scheme which resulted in the setting up Green Gas Ltd, GGL, has already seen the inauguration of eight CNG stations and three conversion workshops in the city of Benin, Edo State, while more outlets are currently under construction in other parts of the country.

The Managing  Director, Nipco, Mr Venkataraman Venkatapathy, who disclosed this while speaking on the sidelines at the Nigeria Gas Association(NGA) 8th international conference and exhibition, said over 1,500 vehicles had been configured to use CNG as vehicular fuel which are capable of saving the nation a whopping sum of money that could have been expended on fuel subsidy.

He explained that the GGL initiative, which is the first of its kind in West Africa, is ushering-in a new era of vehicles running on CNG in Nigeria with its attendant benefits.

Venkatapathy listed other infrastructure provided by the JV Company to include the laying of over 50km steel pipelines for gas distribution to the CNG stations across the city of Benin to guarantee access to gas.

According to him, the conversion process which takes approximately five hours has been very smooth since 2009, when the company started operations, adding that after the conversion, the vehicle can run both on petrol and natural gas, thus giving the motorist a tab switch between using CNG and petrol at will.

The NIPCO boss further explained that in order to create more awareness on the benefits of powering vehicles with gas over petrol, GGL has continued to showcased CNG-powered vehicle in scores of exhibitions like the just concluded NGA, to enable the public see and experience vehicle that runs on petrol and CNG.

He said the latest addition in the CNG revolution being undertaken by GGL is the conversion of Tricycles popularly referred to as “Keke Napep” and mass transit buses in the fleet of the Edo State Government popularly known as “Comrade Bus.”

According to him, five Edo state mass transport buses have been running successfully on CNG for the last six months, while 25 more are in the process of being converted as a further boost to natural gas usage in the state and beyond.

“The CNG initiative which is the first of its kind in West Africa is receiving a lot of support from both the Federal and Edo state governments, a feat that is serving as good catalyst for GGL to pursue the dream with vigour and deep sense of responsibility, the MD said.

He reiterated that pioneering a project of this nature is a big challenge but the unwavering commitment of the Federal Government through the relevant agencies such as NGC, the JV partner , Department of Petroleum Resources, DPR, have spurred the company to double its efforts to enable the citizenry enjoy the benefits of the environment friendly fuel .

In his remarks at the Nipco Pavilion, the Group Executive Director, Gas and Power, NNPC, Dr David Ige, said the GGL initiative is commendable and in line with the transformation policy of President Ebele Jonathan, which harps on the exploration of the abundant natural gas reserves for the benefit of the people.

“The initiative between NIPCO and Nigerian Gas Company (NGC) was to leverage Natural Gas in vehicular use as it is significantly cheap, environment friendly, safe and efficient in comparison to white products especially in a deregulated fuel market,” he submitted.

Ige maintained that over time, the 50% savings currently being enjoyed by taxi drivers whose cars run on CNG would be passed on to passengers, thus making an average passenger in Nigeria move around at a relatively cheaper rate than they could with petrol.

He gave the assurance that government will continue to support initiatives of this nature, adding that of the three companies given the licence to pioneer CNG revolution  in 2007, only NIPCO  has shown enough commitment, exemplified in the zeal at which the projects are being executed.

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