Fuel Scarcity – Two Million Vehicle Engines for Conversion to CNG

Government has given is backing for the conversion of two million vehicles from their current premium motor spirit –powered engines to engines powered by  Compressed Natural Gas (CNG). The project which is being pioneered by NIPCO Plc is to run for five years.
Already, three CNG stations and a kit conversion workshop constructed by NIPCO Plc has been  inaugurated by the Minister of Petroleum Resources, Dr Rilwan Lukman who also appealed to the public to embrace the use of CNG as alternative fuel in the face of the lingering fuel crisis across the nation.
The minister, according to a statement by the NIPCO’s spokesperson, Lawal Taofeek, pointed out that the use of CNG offers lots of benefits over other vehicular fuels, including a net reduction of about 35 percent in transport fuel cost on current liquid fuel.
According to the statement, the minister "stressed that in order to exploit this benefit, government planned to support the conversion of two million vehicles to run on CNG within the next five years across Nigeria".
The three CNG stations and a kit conversion workshop were constructed by NIPCO through a joint venture initiative by NIPCO and Nigerian Gas Company (NGC) under a new outfit; Green Gas Nigeria Ltd, based in Benin, Edo State.
Lukman noted that the joint venture initiative, Green Gas Limited, will be encouraged to put into operation another five CNG stations by the end of March, 2010 and also construct at least three CNG stations along Benin-Lagos highway.
He enumerated the projected account of the implementation of the CNG project to include: Savings in foreign exchange by way of reduced importation of refined fuel, relief to FGN due to the reduced subsidy on liquid fuels for vehicles, elimination of sole dependency on oil refineries, creation of new business in the country and provision of additional employment opportunities.
Other benefits, he listed are: Reduced movement of heavy tankers on roads resulting in enhanced road safety and less pollution from these heavy vehicles leading to healthy city life.
The minister stated that the project is unique in several respects as it only shows the commitment of the Federal Government towards resolving the fuel crisis in Nigeria but also proves the efficiency of the public-private partnership in the form of the dedicated joint venture efforts of Nigerian Gas Company, a subsidiary of NNPC and NIPCO PLC resulting in the birth of Green Gas Nigeria Ltd.