The introduction of gas-fired city buses as part of autogas initiative would save $2.5 billion yearly for Nigeria, currently struggling to come out from its worst recession ever.
In an interview with our correspondent, managing director, Powergas, Mr Sumeet Singh, said: “The introduction of the gas-fired city buses is estimated to save Nigeria over US$ 2.5 billion per year by reducing fuels costs in the transportation and power generation sector by over 30 per cent.”
Singh, who described the government’s autogas initiative as a very laudable initiative, said: “It will go a long way in reducing the high cost of transportation of goods and services, which will, in turn, have a knock-on effect on the economy as a whole.
“I commend the leadership of the DPR and NNPC for recognising the critical role that gas (in this case CNG) plays in driving economic growth as well as having a positive effect on the environment through the elimination of harmful gases released by the use of fossil fuels like petrol and diesel.
“The adoption of gas as a fuel of choice automatically increases the demand for gas, which means more revenue for the players in the sector. This will encourage increased investments in all sections of the value chain.
“Similarly, the ripple effect of the recent increase in fuel pump price has hit transport costs especially for food items moved around the country. Inflation has of course risen sharply to 14.2 per cent as a result.
“The adoption of CNG as fuel by major transporters will definitely have an impact on the cost of transport, which in turn positively affect the economy.”
He added: “With over 200Tcf of discovered gas, Nigeria has more than enough gas to power the nation and also support the transportation sector.
“The upstream players are poised to continue investments in gas so we do not have anything to fear regarding its availability.
“Powergas is the largest producer and distributor of compressed natural gas (CNG) in the off-pipeline gas distribution in Africa providing natural gas solutions in areas where no piped natural gas is available via the use of specially designed trucks called skids.
“For over five years, Powergas has operated four CNG plants in Nigeria, with a total production capacity of over 720,000 SCM (standard cubic metres) per day. In 2020, we commissioned the fifth plant, which added an additional 384,000 SCM to its daily capacity (equivalent to almost 180-200 MW Power Generation Capacity).”
He said: “With our 5 CNG plants strategically located in Lagos, Ogun, Abia, Rivers, and Delta States, our distribution network covers 18 (of 36) States. We are able to deliver anywhere in the south with guaranteed consistent and uninterrupted supply.
“Pipeline vandalism is not a challenge for us as we get our gas from multiple sources directly and we are able to deliver to customers who have been affected by the unavailable pipeline gas or those who do not have access to the pipeline gas.
He added: “Our investments in Nigeria are already in the neighbourhood of USD $50 million and rising as we continue to look out for viable investment opportunities. We are bullish about our ambitions to remain the foremost CNG Company in Nigeria.”