Abuja: The Presidential Compressed Natural Gas Initiative (P-CNGI) has announced that the newly unveiled Mobility-CNG Supply Framework will guarantee an affordable and consistent supply of autogas to consumers nationwide. Mr. Michael Oluwagbemi, Programme Director of P-CNGI, made this statement during the framework's unveiling and implementation event held in Abuja.
According to News Agency of Nigeria, the framework is a collaborative effort involving the P-CNGI, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.), and Gas Aggregation Company of Nigeria Ltd. (GACN). It aims to develop a comprehensive national gas supply strategy that ensures a reliable distribution network from various sources to meet the growing demand across the country.
The CNG pricing management has introduced a transparent pricing framework that accurately reflects the costs associated with upstream natural gas and midstream distribution, while ensuring an affordable alternative price for end users. The initiative is also designed to promote CNG supply incentives, enhance market participation through conversion incentives, and support standardized facilities and technologies to maintain supply stability nationwide.
Oluwagbemi highlighted that the NMDPRA approved a concessionary pricing structure for the auto gas CNG sector in 2024. This pricing structure, part of the presidential energy reforms, allows auto gas CNG to be priced lower than gas for power and industrial uses. The framework's implementation seeks to organize the market for autogas CNG, facilitating demand, payment, and distribution within the sector.
With the market's growth since 2024, the number of daughter stations has increased from 20 to over 65, and two new BOVAS filling stations have opened in Ibadan, Oyo. Additionally, 28 new stations are expected to become operational in the coming weeks. The framework aims to incentivize the private sector, create an enabling environment, and deliver secured and cleaner energy to Nigerians through concessionary gas prices.
Mr. Chijiioke Uzoho, Managing Director of GACN, emphasized that the concessionary pricing framework would ensure regulatory alignment and commercial discipline, with every molecule of gas accounted for. Mr. Oche Agbese, Manager of Gas Trading and Network Code at GACN, noted that the initiative had secured an additional 20 million standard cubic feet daily (mscfd) to meet the rising gas demand and had firmed up gas payment scrutinization structures within the framework.
Furthermore, the framework will work closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to unlock gas from untapped assets, and deploy high-capacity CNG trailers to transport gas from mother stations to daughter stations and retail outlets.
Omolara Obileye, Business Development and Strategy Coordinator at P-CNGI, reported that the program has attracted around 500 million dollars in investment and trained over 2,500 conversion technicians. The CNG footprint is now active in 21 states, with 10 more states set to join in the coming months, which is expected to reduce governance costs and enhance revenue through domestic gas utilization.