NIPCO partners suppliers to lower CNG conversion kit prices

By Adewale Sanyaolu

NIPCO Gas Nigeria Limited has unveiled plans to make Compressed Natural Gas(CNG) conversion kits more affordable and efficient.

The Managing Director/Chief Executive Officer of the firm, Mr. Nagendra Verma, stated this during a media interactive session in Lagos at the weekend.

Verma explained that the crash in CNG conversion kits would be achieved through a partnership with local and international suppliers while actively working with PCNGI to increase the availability of CNG conversion kits and workshops.

He added that educating Nigerians through the support of the media  on the benefits and safety of CNG remains NIPCO’s top priority. “We plan to expand operations further to meet the growing demand for CNG. Our strategic vision includes launching additional CNG stations nationwide and enhancing infrastructure such as pipelines and storage facilities.

However, he lamented that challenges persist, which included the need for a more streamlined, time-bound regulatory approval system to fast-track the expansion of CNG infrastructure.

“We appreciate the government’s ongoing efforts under President Bola Ahmed Tinubu’s administration to ease industry bottlenecks and provide a supportive policy framework,”.

The NIPCO Gas boss said the firm recently entered into an agreement with Delta State to construct a CNG station and CNG conversion workshop in Asaba.

“We are hoping to increase the number of CNG stations and conversion workshops in Delta State with the support of the government. Delta State has provided the land for this facility, which is very proactive and welcoming stel taken by them. We are sure, with such a type of public private partnership, it will provide speed to the Presidential CNG initiative,”.

He disclosed that the company has also recorded a major milestone with the  award of a Gas Distribution License (GDL) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Government.

According to him, the milestone highlights NIPCO Gas’ pioneering role in the sub-sector and strengthens investor confidence in Nigeria’s gas industry.

Verma said the exclusivity period of 25 years granted under these licenses prevents infrastructure duplication, ensuring efficiency and national resource optimisation.

The GDL awarded to NIPCO Gas included; Ibadan Axis (Ogere-Ibadan-Oluyole-Olorisaoko-Asejire-Ajoda) – NIPCO Gas/NGML, Benin City – NIPCO Gas, Lekki Free Trade Zone – NIPCO Gas/NGML and Kara-Sagamu-Abeokuta-Ibadan Axis (Sagamu Interchange-Ibafo-Isheri-Otedola Bridge) – NIPCO Gas/NGML.

“With these awards, NIPCO Gas Limited 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.

“Our operational performance has been exceptional, with significant strides in supply chain efficiency, expansion of CNG infrastructure, customer satisfaction, and an increased 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,”. The NIPCO Gas MD said he believes that with the right policies and infrastructure, CNG can play a transformative role in Nigeria’s energy mix.

“As an organisation, NIPCO Gas remains committed to advancing the use of indigenous natural gas, supporting economic growth, and aligning with the presidential development agenda. “I reiterate our commitment to driving the nationwide shift to gas as a primary fuel alternative. We appreciate your ongoing support in sharing our story and achievements, and we look forward to working together in shaping the future of Nigeria’s energy sector.’’