After Shipping 79 Million Litres of Petrol, Dangote Invests N460 Billion in Fuel Priced at N200

• The Dangote group has keyed into the CNG initiative of the Nigerian government by investing N460 billion in the project
• The group managing director of Dangote Cement, Arvind Parthak, disclosed that the company aims to transition its fleet to CNG by 2026
• He disclosed that the move aligns with the initiative of the Nigerian government following the petrol subsidy removal

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

To show its support for President Bola Tinubu’s compressed natural gas (CNG) initiative, Dangote Cement has invested about N460 billion in CNG technology and infrastructure.

The company disclosed that the investment boosts its leadership in the CNG sector and shows dedication to combating climate change and supporting a transition to a low-carbon economy.

Dangote Cement converts 1,500 trucks to CNG

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Arvind Pathak, the group managing director of Dangote Cement, disclosed that the investment aims to acquire 100% CNG trucks as part of a long-term plan to transition its fleet to CNG.

The move marks a significant milestone in Dangote’s clean energy transition. The company aims to operate most of its fleet on CNG by mid-2026.

Daily Trust reports that as of October 2024, the company has received its first batch of 1,500 mono-fuel CNG trucks and expects 1,600 CNG trucks, totalling 3,100 before the end of the year.

According to Pathak, by mid-2026, Dangote Cement will operate a fleet predominantly running on CNG.

To boost this transformation, the company disclosed that it is investing and expanding its CNG fuelling infrastructure to ensure that its growing fleet has reliable access to CNG as its fuel.

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Dangote Cement sets timeline for complete transition

Parthak disclosed that there are plans to pursue the deployment timeline beginning in the first quarter of next year. The company keeps its eyes on the ball to ensure it does not miss its target dates for a complete transition.

The group MD said that the company’s CNG infrastructure investment has positively influenced Nigeria’s transition to cleaner fuels, adding that the CNG station at Obajana can refuel over 3,000 trucks, showing its commitment, with a second station under construction in Ibese to support operations.

Aliko Dangote, Chairman of the Dangote Group, said the company’s investment in CNG aligns with Nigeria’s Nationally Determined Contribution under the Paris Agreement, aiming for net-zero emissions by 2060.

Nigeria continues its aggressive push for CNG adoption

The Nigerian government is aggressively pursuing the CNG initiative as an alternative to petrol after removing subsidies for petroleum products.

President Bola Tinubu recently told Nigerians to choose between buying petrol at N1,000 per litre or CNG at N200.

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The President said this after inaugurating CNG at N230 recently.

However, there have been concerns about the safety of CNG cylinders following explosions in some quarters.

A previous report by Legit.ng disclosed that Dangote Refinery shipped over 79 million litres of petrol to Lagos as it ramps up PMS production.

Dangote Refinery begins direct petrol sale to marketers

Legit.ng earlier reported that the Dangote Petroleum Refinery has already started supplying petrol to some oil marketers without resorting to the Nigerian National Petroleum Company Limited (NNPC).

The development comes as marketers strengthen their move to purchase the product directly from the facility. While others imported petrol, reports say over 123 million litres will hit the market in the coming weeks.

Legit.ng earlier reported that four vessels loaded with PMS arrived at the Lagos and Calabar ports between Friday, October 18 and Sunday, October 20, 2024.

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Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng