By Chidi Ugwu
Nigeria’s capacity for compressed natural gas (CNG) conversion has surged by an estimated 2500%, in the last one year, Nigeria’s Midstream and Downstream Regulatory Authority (NMDPRA) has disclosed.
Farouk Ahmed, Chief Executive of NMDPRA, who made the disclosure during the inugural Petroleum Industry Stakeholders Forum which held in Abuja on Thursday, the astonishing leap is a result of the Authority’s support to supported the Presidential CNG Initiative otherwise known as PCNGI which has over the last year, helped stimulate 186 new conversion centers.
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To this end, Ahmed said the conversions alongside new buys have raised Nigerian Gas Vehicles NGV population to an estimated 30-50.000 vehicles and trucks and they continue to grow daily.
“The development of CNG as a viable alternative to Petrol has been incentivized. The NMDPRA has supported the PCNGI which has over the last year, helped stimulate 186 new conversion centers increasing Nigeria’s conversion capacity by over 2500%. These conversions alongside new buys have raised Nigeria Nigerian Gas Vehicles NGV population to an estimated 30-50.000 vehicles and trucks and it continues to grow daily.
“With over $400 million attracted for investment in 86 and 65 new daughters & mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56. The collaborative efforts of PCNGI NMDPRA and SON led to the development of standards and the Nigeria Gas Vehicle Monitoring System to ensure safety which is already in pilot phase, expected to be launched in 2025.
“To address the observed deficit in critical energy projects financing, the NMDPRA is supporting the establishment of Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent. Indeed, Nigeria is poised to be the energy center for Africa, with competitive financing and favourable regulatory environment.
“Honouroble Ministers Sir, the NMDPRA is also supporting the Decade of gas Program which is making significant progress in unlocking our natural gas resources for industrializing the country. The program supports gas supply and development of infrastructure projects. In line with PIA provisions, the NMDPRA has emplaced a pricing regime that supports the growth of gas supply, infrastructure and utilisation projects.
“The NMDPRA has also enshrined transparency and accountability in its regulatory activities, we have progressively automated our processes to enhance efficiency.
“The Authority has enacted 20 regulations to give effect to PIA provisions. We have reviewed the Gas Transportation Network Code for improved access to natural gas and operationalized the MDGIF as a catalyst for gas infrastructure development and investments.
“We have also upscaled our processes for Issuance of Licences, Permits and Authorizations for the establishment and operations of new refineries. gas plonts. pipelines and other hydrocarbon handling facilities.
“In line with our strategic policies, we maintain a veritable interagency collaboration with security agencies (NSA, DSS. Customs Service, Nigerian Navy, etc.) which has curbed sharp practices such as diversion/smuggling of petroleum products.
“The NMDPRA also collaborates with the SON. the National Automotive Design and Development Council (NADDC), and National Institute of Transportation Technology (NITT) in ensuring that our mobility CNG growth is achieved in a safe and sustainable manner” he said.
The Authority Chief Executive however, noted that some challenges still exist that need to be address, including ‘Establishment and operation of petroleum handling facilities without proper licences, permits and authorizations; Poor collaborations for Open / third party Access to facilities; and Lack of cooperation of some operators for an effective regulatory oversight in line with PIA provisions.
He urged the industry to adhere to all regulatory requirements, especially as they relate to safety, efficiency, best practices, sustainability, consumer protection and community participation.
“As we progress into the year 2025. the NMDPRA wouid continue consolidating its successes for enhanced regulatory oversight. This would include the upgrade of our laboratories for enhanced product quality analysis and referencing, inter-agency collaborations, automation, and promoting sustainability in the industry. 29. In addition, we will continue to collaborate with PCNGI to ensure deployment of CNG infrastruter in major cities of Lagos and Abuja, up to 100,000 conversions while collaborating with states to develop NGVs in other areas” he added.
