Why Deployment Of CNG Plant Is Slow – Cttee Chairman


Chairman of Auto Gas Committee of Nigeria LPG Association, Bambo Ademiluyi has explained that the reason for the slow pace in the deployment of Compress Natural Gas ,CNG, is due to the cost implication.

Ademiluyi said that it takes between $150,000 (N222.2m) to $200,000 or N 296.2m to deploy a CNG filling station compared to PMS and LPG stations which take about N40m or less.

He said, “I know that they are not adequate and a lot more needs to be done. However, to deploy a CNG station, you need about $150,000-$200,000. For most marketers, this is not viable. So, if I am going to spend $150,000 how possible can I make the money in two to three years?

“But if you deploy an LPG station that is going to do the same thing, you can make your money back within two to three years and you are not spending $150,000. You will spend around N30m-N40m maximum for a standard filing station according to specification”.

According to him, the cost implication is the main issue and not “CNG availability”,

Last month, Nigeria’s state-owned energy company, the Nigerian National Petroleum Company Ltd ,NNPCL, took further steps to provide Nigerians with a plant that will service over 3,700 cars daily with CNG to power their non-PMS cars and trucks.

The NNPC and its partner Transit Gas Nigeria Limited ,TGNL, a private sector organization commissioned the 5.2 million standard cubic feet plant around the gas hub in Ilasamaja.

The NNPC also plans to roll out six more Compressed Natural Gas ,CNG, plants across Nigeria


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