A partner of the Nigerian National Petroleum Company Limited (NNPCL), Cleanergy Innovation Limited (CIL) has said that the price of Compressed Natural Gas (CNG) will crash when the Ajaokuta Kaduna Kano (AKK) Gas pipeline begins production.
NNPCL Group Chief Executive Officer, Malam Mele Kyari, had said the AKK will be completed by the First Quarter of 2025.
Addressing reporters after the opening ceremony of the NNPCL CNG station opposite Prince and Princess Estate, Abuja, the CIL, Executive Vice Chairman, Shettima Bukhar Imam, said AKK will transport the gas while other stations will produce and supply it seamlessly.
He said: “If you produce at the refinery, you have to truck it, and when you truck it, you have to pay extra costs, and the government has to bear the cost. That’s why you always have higher costs, and that’s why the government is paying extra money for transport and other costs.
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“So, once we have this AKK, the gas will seamlessly move, and then the other stations will just produce and then supply to these stations seamlessly.”
Imam noted that the Premium Motor Spirit (PMS) petrol has become expensive because the pipelines are no longer conveying the product.
Insisting the CNG price will nosedive in future, the Executive Vice Chairman insisted “I mean, the short, medium and long term, prices will come down, and then we will adequately utilize the abundance gas and make it available for Nigerians.”
He also said only 3% of the country’s gas is deployed to CNG production, stressing there will be no shortage that can raise its price.
Imam said CNG will bring a cheaper, cleaner alternative to PMS which will bring down the cost, and create more job opportunities and so many other advantages for the country and its citizenry.
According to him, there is limited capacity for petrol because it is imported, unlike the CNG that is in abundance in Nigeria.
“Once people start to see the advantages, which is literally and largely based on us putting in the right engineers, the right environment, the right mechanics, the right resources, human resources, to make sure that the combustion and the kits and everything are working as a kind of relative.”
He explained that CIL collaborates with NNPC Retail Limited to provide and install CNG across the country.
He said the firm has a contract to do more in Abuja and Lagos.
Imam said aside from the NNPCL contract on CNG, CIL has invested its resources in the industry to attract more markets in generators, tricycle and other sectors.
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