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Nipco lists four anti investment forces in CNG sub-sector

Managing Director of leading player in Compressed Natural Gas (CNG) subsector, Nipco Gas Limited, Mr. Sanjay Teotia has identified lack of access to land, paucity of infrastructure, inappropriate pricing, and non-existence of a regulating agency as the key drawbacks against massive investments into the nation’s CNG subsector.

Business Hilights reports that CNG (methane stored at high pressure) is a fuel that can be used in place of gasolinediesel fuel and liquefied petroleum gas (LPG). CNG combustion produces fewer undesirable gases than the aforementioned fuels. In comparison to other fuels, natural gas poses less of a threat in the event of a spill, because it is lighter than air and disperses quickly when released.

Giving further insights during a recent media tour of the company’s facilities in Benin City, Edo State, Teotia argued that despite the enormous natural gas reserves in the country, the right investment-friendly policies are not coming with the needed speed.

A statement issued by the Assistant General Manager, Corporate Affairs at Nipco, Lawal Taofeek, regretted that whereas in other climes, CNG had been in use as vehicular fuel because of its profitability and environmental friendliness, “Nigeria would continue to miss out on the benefits of the CNG if the challenges were not resolved.”

However, Nipco was quick to recongise what it described as Federal Government’s National Gas Expansion Programme (NGEP), which was recently inaugurated by the Minister of State for Petroleum Resources, Chief Timipre Silva, to steer the gas sector for optimal performance.

Nipco added that “The establishment of the committee is a clear indication of the genuine resolve of the government to tackle the challenges bedevilling the industry and pave the way for better utilisation of the nation’s massive gas resources in the overall interest of all stakeholders.”

NIPCO gas
NIPCO gas tank farm

Business Hilights recalls that Nipco was licensed to operate in Nigeria since 2007 and currently has seven gas stations in Benin, with other stations in Lagos and Delta states.

The group had laid 51 kilometres of gas pipeline in Benin to distribute the CNG to the seven stations in the city.

On deepening vehicular use of the CNG, Nipco averred that “Currently, we have converted no fewer than 5,000 vehicles from petrol and diesel to the CNG, and now distribute the product to few eateries in the city. We have the capacity to dispense 500 standard cubic metres and dispense to no fewer than 20,000 vehicles here.”