FG Offers Support to Set Up CNG Pumps in Every Fuel Station

• The transition to cleaner energy is set to be accelerated as the federal government has stepped in
• The government has offered support to petroleum retailers to include CNG pumps in their stations
• The minister of state petroleum resources (Oil) provided insights into the support and addressed their concerns

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The federal government has pledged its readiness to help petrol marketers expand the Compressed Natural Gas (CNG) distribution outlet across Nigeria.

The minister of state petroleum resources (oil), Senator Heineken Lokpobiri, noted that supporting the Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) is the fastest way to fast-track the presence of CNG retail outlets throughout the country.

Senator Lokpobirri stated this while hosting the PETROAN President, Dr Billy Gillis-Harry, who was on a courtesy visit.

FG earmarks $200 million for CNG infrastructure

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Recall that the federal government already earmarked over $200 million to be spent on setting up CNG infrastructure across the country.

This will provide the infrastructure to serve the 100,000 vehicles the government wants to convert to CNG before the end of 2025.

He observed that the government plans to have CNG outlets in every fuel station to accelerate the transition to cleaner energy.

CNG pumps in every filling station

Lokpobiri pledged that the government was ready to support the retailers to add CNG pumps to their outlets, just the way they have Premium Motor Spirit (PMS), diesel, and Dual Purpose Kerosene (DPK) pumps, and address their concerns.

Recall that the NNPCL already launched six new CNG retail outlets where Nigerians can buy CNG for as low as N200.

The Minister commended the group for their support to the ministry, especially since the complete deregulation of the sector, which has translated into increased opportunities for investors, Champion News reports.

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Lokpobiri further commented on the naira-for-crude deal between the NNPCL and the Dangote Petroleum Refinery, noting that it is still on even though the refineries can also buy crude from other sources.

Regarding PETROAN’s request to have a presence on the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Senator Lokpobiri replied that even though he thought it necessary, only an amendment to the Petroleum Industry Act (PIA) 2023 could change the current board composition.

Earlier in his remarks, Dr. Gillis-Harry thanked the minister for the decisive actions that have been taken to curb crude theft and increase production in the last couple of years.

He also requested that PETROAN be given a permanent percentage allocation of petroleum products instead of receiving random allocations. This, he explained, would ensure that the outlets are always wet.

FG set to launch 150 CNG stations

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In related news, the Nigerian government is planning to make Compressed Natural Gas (CNG) stations more accessible to Nigerians.

The target is to launch 150 new retail stations by the end of the year, which it hopes will encourage more Nigerians to convert from fuel to CNG.

President Bola Tinubu has also directed that one million vehicles must be converted to CNG by 2027.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng