by Nurat Uthman
Nigeria’s NNPC said it plans to build six compressed natural gas service plants with local firm Axxela to expand access to alternative fuel for cars and industries after commissioning its first plant in Lagos on Thursday.
The plan is part of the oil- and gas-rich nation’s effort to lower transportation costs which skyrocketed as petrol pump prices rose last year following the removal of costly gasoline subsidies, angering the public.
On Thursday, state oil firm NNPC said it commissioned a CNG station in Lagos, with capacity to deliver 5.2 million standard cubic feet of gas per day to serve around 3 700 cars daily, and supply gas to industries and other companies.
It also said it has reached a final investment decision with Axxela on new plants.
“Although the elimination of the premium motor spirit (petrol) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” Nigeria’s Minister in charge of gas resources, Ekperikpe Ekpo, said.
