Compressed Gas Conversion Initiative Records Commendable Milestone

The Compresed Gas Conversion Initiative of the Federal Government, has recorded an impressive milestone, update from the authorities has shown.

This comes by way of the The Compressed Natural Gas (CNG) Conversion centres increasing to 158 in 2024 from seven in 2023, indicating an increase of more than 2,000 percent.

Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), Engr. Michael Oluwagbemi, disclosed this during a panel discussion meeting in in Bayelsa state.

He said these at the13th Practical Nigerian Content Forum, with the theme: “From Policy to Practice: Strengthening Domestication for Economic Development.

Informing that the, Pi-CNG plans to increase the number of conversion centres to 1,000 more to meet the increasing needs of CNG stakeholders, he added:

“The goal of increasing the number of conversion centres is to facilitate converting petrol cars to compressed natural gas (CNG) vehicles, creating a robust market for CNG stations.

“The conversion cost, including kits and services, is approximately ₦1 million per vehicle. With a target of converting five million vehicles, this represents a ₦5 trillion market opportunity.”

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On other initiatives to drive the compressed gas conversion initiative, he stated: “We are planning to establish a CNG manufacturing hub in Ajaokuta, Kogi State, where 10 hectares of land have already been secured. Five key components of the kits, such as flexible pipes, filters, and valves, can be manufactured locally.

“Even the Electronic Control Unit (ECU) can be developed through reverse engineering. We are already in discussions to make this a reality.”

Calling on the Nigerian Content Development and Monitoring Board (NCDMB) to collaborate on the development of the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS), Oluwagbemi added tat plans for assembly plants dedicated to producing fully CNG-powered vehicles and outlined Pi-CNG’s commitment to converting 500,000 commercial vehicles.

“We are working with the Nigerian Institute of Transport Technology (NITT) to certify trainees and ensure that local mechanics have the skills to handle CNG conversions and maintenance.

“We aim to create opportunities for mechanics and entrepreneurs to own CNG maintenance or conversion stations.

“We are witnessing queues at CNG refueling stations in some states, indicating a growing demand. Independent filling station owners are now considering retrofitting their facilities or adding CNG refueling units to meet this demand.

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“The cost of setting up a CNG refueling station, initially about $600,000, is being mitigated by the introduction of composite refueling units.

“These portable units, modeled after technologies used in India, are being deployed in Nigeria and offer faster refueling capabilities.”

Industry stakeholders are of the opinion that the compressed gas conversion initiative would indeed advance the course of the nation’s self-sustainable drive in a sector key and strategic.