- Compressed Natural Gas (CNG) conversion centres increased to 158 in 2024, a 2,000% increase from 2023
- Plans to convert 5 million vehicles to CNG, creating a ₦5 trillion market opportunity
- Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG) targeted 1,000 new CNG training institutes to boost local skills and entrepreneurship
Compressed Natural Gas (CNG) conversion centres saw a dramatic increase in 2024, reaching 158 compared to just seven in 2023, a rise of over 2,000 per cent.
This was disclosed by Engineer Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), during a panel discussion on "From Policy to Practice: Strengthening Domestication for Economic Development" in Bayelsa state at the 13th Practical Nigerian Content Forum.
“The goal of increasing the number of conversion centres is to facilitate converting petrol cars to compressed natural gas (CNG) vehicles, creating a robust market for CNG stations.
“The conversion cost, including kits and services, is approximately ₦1 million per vehicle. With a target of converting five million vehicles, this represents a ₦5 trillion market opportunity,” Oluwagbemi stated.
He revealed that Pi-CNG has plans to increase the number of conversion centres by 1,000 to meet the growing needs of CNG stakeholders.
Pi-CNG to build CNG hub in Ajaokuta
He also said, “We are planning to establish a CNG manufacturing hub in Ajaokuta, Kogi State, where 10 hectares of land have already been secured. Five key components of the kits, such as flexible pipes, filters, and valves, can be manufactured locally.
“Even the Electronic Control Unit (ECU) can be developed through reverse engineering. We are already in discussions to make this a reality.”
Oluwagbemi appealed to the Nigerian Content Development and Monitoring Board (NCDMB) to partner in the creation of the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS).
He spoke about plans to create assembly plants for fully CNG-powered vehicles and outlined Pi-CNG’s strategy to convert 500,000 commercial vehicles. As part of its focus on capacity building, the initiative plans to establish 1,000 training institutes nationwide.
“We are working with the Nigerian Institute of Transport Technology (NITT) to certify trainees and ensure that local mechanics have the skills to handle CNG conversions and maintenance.
“We aim to create opportunities for mechanics and entrepreneurs to own CNG maintenance or conversion stations.
“We are witnessing queues at CNG refuelling stations in some states, indicating a growing demand. Independent filling station owners are now considering retrofitting their facilities or adding CNG refuelling units to meet this demand.
“The cost of setting up a CNG refuelling station, initially about $600,000, is being mitigated by the introduction of composite refuelling units.
“These portable units, modelled after technologies used in India, are being deployed in Nigeria and offer faster refuelling capabilities,” he added.
Oluwagbemi shared that Pi-CNG is combining CNG refuelling units with compression facilities to form a direct supply chain from gas sources and voiced hope in attracting upstream gas producers and midstream operators to Nigeria’s flourishing CNG sector.
“We are creating a beautiful interplay in the CNG value chain, despite initial challenges.
“Pi-CNG has entered into an equity agreement with a company in Ajaokuta to develop a mini-LNG facility, with support from the Bank of Industry and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Approvals are currently underway.”
NNPC acquires equipment for 40 new CNG stations
Meanwhile, TheRadar earlier reported that the Nigerian National Petroleum Company Limited (NNPC) acquired equipment to establish 40 new Compressed Natural Gas (CNG) stations nationwide.
The initiative was part of the Federal Government's plan to increase CNG stations to approximately 100 within six months, addressing concerns over limited availability.