Nigeria announces plan for fresh 500 CNG stations

Nigeria has announced plans to build an additional 500 Compressed Natural Gas, CNG, stations across the country.

This was disclosed in a recent report by the Midstream and Downstream Gas Infrastructure Fund, MDGIF.

According to MDGIF, the project will be executed in partnership with the Chinese manufacturer Endurance Group over the next three years.

The Executive Director of MDGIF, Mr Oluwole Adama, said the discussion centred on the creation of a government-backed special purpose vehicle to be promoted by MDGIF, BOI, Endurance Group and Séquor Investment Partners.

“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.

“Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company, CAM InfraCo, which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide,” Adama stated.

Similarly, Mr Oluwatoyin Subair, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the project aligns with President Bola Tinubu’s vision of ensuring energy security by deepening the use of auto CNG and reducing overdependence on PMS and AGO, especially in the transportation sector.

He added that the initiative supports the administration’s broader economic reforms aimed at promoting cleaner, more affordable energy alternatives for Nigerians while creating new employment opportunities within the domestic gas value chain.

Also speaking, the chief executive officer of Endurance Group, Mr Eric Lin, noted that the objective of the special purpose vehicle is to establish a nationwide CNG refuelling, maintenance and logistics ecosystem by leasing CNG-related equipment to certified operators, while ensuring a consistent and reliable gas supply through a world-class virtual pipeline network.