(Ecofin Agency) – Nigeria has significant natural gas resources, the authorities of which are actively working to promote exploitation through various initiatives notably involving local players in the oil and gas industry.
In Nigeria, the public oil company (NNPC Ltd) announced on Thursday, May 30, a project targeting the installation of six new compressed natural gas (CNG) service stations. The initiative is linked to a policy aimed at responding to the increase in the cost of transport in the country, resulting from the removal of the fuel subsidy.
This program comes after the successful installation in Lagos of a first CNG station, with a capacity of 5.2 million standard cubic feet of gas per day capable of serving approximately 3,700 vehicles daily. It is planned to be implemented with the contribution of Axxela, a local energy company.
Since the suspension of the fuel subsidy, the role of this fuel in Nigeria’s energy strategy has been somewhat consolidated. Thus, in August 2023, the NNPC, for example, joined forces with the local company NIPCO Gas, to promote the availability and adoption of CNG for vehicles.
Most recently in March, UTM Offshore, another local energy company, obtained the necessary approvals from the federal government for the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) phase of the project to install the first floating liquefaction unit of natural gas (FNLG) from Nigeria.
Abdel-Latif Boureima
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