FG grants 25-year licence to firm to convert vehicle to CNG

• The federal government has granted gas distribution licenses to Nipco Gas Limited
• According to the company's MD, the milestone increases investor trust in Nigeria's gas sector
• He stated that the company is actively collaborating with PCNGI to expand the number of CNG conversion kits

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Nipco Gas Limited said it has obtained gas distribution licenses from the federal government.

NIPCO's MD said the milestone demonstrates the company's innovative position. Photo Credit: NIPCO
Source: UGC

The company in a statement announced the conversion of 15,000 vehicles to run on Compressed Natural Gas, The Punch reported.

According to the report, Nipco Gas received the GDL from the government via the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Speaking to reporters in Lagos, the company's managing director, Nagendra Verma, revealed this, saying the milestone demonstrates the company's innovative position in the sub-sector and boosts investor confidence in Nigeria's gas sector.

He said,

“The exclusivity period of 25 years granted under these licences prevents infrastructure duplication, ensuring efficiency and national resource optimisation.“Gas Distribution Licenses awarded to Nipco Gas Ltd include 1. Ibadan Axis (Ogere-Ibadan-Oluyole-Olorisaoko-Asejire-Ajoda) – Nipco Gas/NGML. 2. Benin City – Nipco Gas. 3. Lekki Free Trade Zone – Nipco Gas/NGML. 4. Kara-Sagamu-Abeokuta-Ibadan Axis (Sagamu Interchange-Ibafo-Isheri-Otedola Bridge) – Nipco Gas/NGML.“With these awards Nipco Gas Ltd now stands as Nigeria’s largest indigenous licensed gas distribution company. This achievement is a testament to our unwavering commitment and the continuous support of stakeholders like you.”

According to Verma, the company's operational performance has been outstanding, with notable advancements in customer satisfaction, CNG infrastructure expansion, supply chain efficiency, and market share.

“We have successfully commissioned several CNG stations across Abuja, Lagos, Edo, Delta, Ogun, Oyo, Kogi, and Akwa Ibom states. Our joint venture with NNPC Gas Marketing Limited (NGML) has strengthened industrial gas supply, particularly in the Lekki and Lagos-Ibadan corridors.“Nipco Gas has entered into an agreement with Delta State very recently to construct a CNG station and CNG conversion workshop initially in Asaba. We are hoping to increase the number of CNG stations and conversion workshops in Delta State with the support of the government.”

Photo Credit: NIPCO
Source: Getty Images

The property for this facility was supplied by Delta State, Verma said, calling it a very welcome and proactive move. "We are confident that the Presidential CNG initiative will gain momentum with this kind of public-private partnership," he said.

Verma added,

“We are actively working with PCNGI to increase the availability of CNG conversion kits and workshops. By forging partnerships with local and international suppliers, we are committed to making conversion kits more affordable and efficient. Educating Nigerians on the benefits and safety of CNG remains our top priority, and we count on the media to play a pivotal role in this effort.”

Meanwhile, Legit.ng reported that the MRS Nigeria and Heyden filling stations are selling petrol at lower prices than the Nigerian National Petroleum Company (NNPC) Limited's in Lagos. Checks by Legit.ng showed that the MRS filling station has set its pump price at N925 per litre, while the Heyden filling station is selling at N940 per litre.

Filling station owners move to sell fuel priced at N200 nationwide

Legit.ng reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the federal government to provide financial support to transform filling stations into refuelling points for Compressed Natural Gas (CNG).

Legit.ng earlier reported that CNG is priced at N200 per Standard Cubic Meter, which is far cheaper than paying N1,000 per litre for Premium Motor Spirit (PMS), commonly known as petrol.

There is also an order from the federal government for oil marketers to install CNG pumps at their filling stations.

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Source: Legit.ng