Commercial vehicle drivers and other potential users are raising concerns over inadequate infrastructure for conversion and refuelling, as well as high cost of kits for seamless transition to the Compressed Natural Gas (CNG)-power system for their vehicles, Daily Trust’s findings have shown.

This is coming at the height of the renewed vigor of the federal government through the Presidential Initiative on Compressed Natural Gas (Pi-CNG) to drive the transition from petrol-powered vehicles to CNG to mitigate the high cost of petrol.

Our correspondents report that the latest intervention by the government on the CNG took place on Friday, October 18, 2024, in Uyo, Akwa Ibom State. It was tagged, “Conversion Incentive Programme.”

Unveiling the programme in a brief ceremony at Nsik Motors Terminal, Itam, Uyo, the Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, stated that the initiative was aimed at mitigating the financial burden caused by the fuel subsidy removal.

Oluwagbemi, who was represented at the event by the Head of Commercials, Tosin Coker, added that the inauguration was a pilot project designed to bring about a new benchmark for CNG vehicle conversion and training in the state. The federal government had unveiled the CNG initiative with focus on converting one million petrol-powered vehicles to gas by 2027.

Government officials say the PiCNG has been working relentlessly to roll out CNG vehicles across the country by declaring free conversion which kicked off recently in Lagos, Ogun, Oyo, Abuja, Kaduna, among others.

The government had earlier approved the rollout of CNG for vehicles at N230 per kg to provide a cheaper and cleaner alternative to petrol, after the price of the latter was jacked up.

At present, a litre of petrol is sold above N1, 000 at official price with independent marketers selling as much as N1, 200.

But apart from the few conversion centres set up by the PiCGN, many states across the country do not yet have conversion centres, let alone operationalising the CNG initiative.

With conversion costing between N1.2 million and N1.5 million, many commercial motorists said they could not afford it.

There are some CNG dispensing stations across the country for those who wish to fill their vehicle cylinders. This is just as reports from across the states indicate a slow take-off of the initiative.

No conversion centre in Kano yet

Commercial drivers in Kano said they were disturbed over the absence of CNG conversion centres in the state, as rising cost of fuel continues to take toll on their profit margins.

Daily Trust reports that no CNG conversion centre is made available in Kano, despite its high population and sheer number of commercial vehicles trooping in and out of the state on a daily basis.

Checks by one of our correspondents revealed that the NNPC Mega Station, located at Hotoro Eastern bypass roundabout, had been earmarked for this purpose, but it has not taken off.

A transport union branch chairman at Gyadi-Gyadi Zaria Road Mini Motor Park, Adamu Yakubu Mai Karfi, said members could not fathom why a conversation centre was not yet sited in Kano which can potentially offer alternative to expensive fuel.

A commercial driver, Suleiman Isa, said he was eager to convert his vehicle.

Similar concerns in Borno, Yobe

The Chairman of the Nigerian Association of Road Transport Owners (NARTO) in Yobe State, Mohammed Isa Nyakire, said like what obtains in other countries, Nigeria must also consider articulated vehicles in the CNG initiative.

“Since the CNG conversion initiative is meant to reduce the cost and hardship of motorists, we expect that the North East should be among the first to have a centre.

“Few days back, we had a stakeholders meeting with the North East Development Commission on their plan to introduce e-vehicles to ease transportation cost. It’s a welcome idea but unfortunately, heavy trucks were also not part of their target.

“However, they all promised to expand the initiatives to cover trucks, but I would also advise that it should be urgent…Businesses have been grounded with the current state of affairs,” he said.

Inusa Salihu, a motorist at Bulumkutu area, Maiduguri, said he was afraid of converting his car to CNG.

“You know, we all need a substitute for petrol but how are we sure that the price of CNG will not go high? We want the government to do a lot of sensitisation,” he said.

Kogi

The federal government had on October 2, 2024, inaugurated its P-CNG project in Lokoja, Kogi State, with 10 CNG-powered buses.

Our correspondent reports that apart from Lokoja where the project was launched, there are no CNG dispensing centres in other parts of the state.

But an official, who pleaded for anonymity, said several areas in Lokoja, Kabba, Okene and Idah in the state have been marked out for dispensing centres.

“The main concern now is how long it will take for them to establish the centres,” he said.

A resident, Usman Abdu, said while he is willing to convert his vehicle, which he believes is necessary, “my fear is about the refueling stations.”

Oyo

Daily Trust reports that three conversion centres are operational in Ibadan, one at NIPCO Filling Station near Toll Gate, Ibadan-Lagos Expressway, while the second is at Automation Auto Gas, Podo Industrial Village and BOVAS Filling Station, Ajibode, along the UI Ojoo Road, Ibadan.

However, a number of commercial drivers who spoke with Daily Trust alleged high cost of conversion to CNG.

A private car owner, Wole Jayeola, who converted his Toyota Corolla 2010 model two months ago, said using the CNG is the best way for Nigerians to overcome the challenges of the high cost of fuel.

He urged the federal government to subsidise the cost of conversion of vehicles to encourage others.

Akwa Ibom 

In Akwa Ibom State, there is no CNG conversion centre.

However, the state-owned company, Nsik Oil and Gas Limited, was among the six gas infrastructure companies that signed N122 billion project equity through the Midstream and Downstream Gas Infrastructure Fund, with the federal government last week.

Governor Umo Eno had said a CNG-bus project would soon be launched, but noted that without having refilling depots, it is senseless to introduce CNG-powered buses.

“We’re in search of partners who will provide refilling depots for our CNG buses. Once this is achieved, we’ll launch this programme. It does not make sense to buy CNG buses that’ll not have refilling depots. Doing so will defeat the purpose of this initiative,” he said.

Ekiti

The PCNGi recently launched about 15 buses and seven conversion centres to kick off the initiative in Ekiti State.

The CEO of PCNGi, Oluwagbemi, had said many more conversion centres would be established to empower the state.

A driver, Oyekanle Jeleel, said he decided to convert his car to CNG because of the positive testimonies from those who are already using it.

The Chief Operating Officer of Portland Gasoline Technology, Michelle Ejiofor, said: “If we have a lot of the mass transit vehicles being retrofitted with the CNG, it means that it will lower the cost of food, cost of transportation. And then Nigerians get to smile, actually.”

Kaduna

There are three accredited CNG conversion centers in Kaduna State located at the National Institute for Transport Technology (NITT) Zaria, the Peugeot Automobile Nigeria Limited (PAN) in Kakuri, and Royal Energies in Kakau along the Kaduna-Abuja highway. But there is only one CNG dispensing point available in Kaduna which is Greenville LNG located also along the Kaduna-Abuja road.

Chairman, NURTW, Kofar Doka branch, Zaria, Lawal Abdullahi, told Daily Trust that eight vehicles had so far been converted in his branch.

He said, “I am just coming back from Kaduna where I went to refill my car. It is a good initiative, but the distance to refill my 4.6kg cylinder at N6,700 cost me fuel of about N20,000.

“Another issue we have encountered is leakages from the cylinders and lack of calibration computers. Some cars were leaking. Even though they have been fixed, we are not using the gas because the cars have not been calibrated.”

Benue

In Benue State, there are no conversion centres and CNG filling stations yet, but the Commissioner for Power, Transport and Renewable Energy, Matthew Omale, told our correspondents yesterday that efforts were underway to address the issue.

He said though the NURTW had been engaged in discussions to drive this initiative, the lack of infrastructure posed a challenge.

Plateau

Our correspondent reports that there is no CNG conversion centre yet in Plateau State.

Officials of the PiCNG had, earlier this year visited Jos to search for a site for a conversion centre, but have yet to return.

Chairman, NURTW, Bauchi Motor Park, Jos, said: “Our concern with the CNG is that,in the long run, it may become expensive like petrol.”

Kwara  

Government officials in Kwara State yesterday told Daily Trust that the federal government’s kits for the CNG project had not been received.  An official of the state’s Ministry of Works, who preferred anonymity, said: “The kits from the federal government are yet to get here.”

When Daily Trust visited the Roller Energy Station located at the Post Office, an official said “everything had been installed. “Our problem is lack of gas.”

What FG should do to drive the initiative – Stakeholders

The Chairman of the National Association of Small and Medium Enterprises (NASME) in Lagos State, Prof. Adebayo Adams, said with the “suffocating” petrol prices, the federal government should heavily subsidise CNG conversion.

“Also, let us have CNG sold at all filling stations as cheap as N100 per kg. When we do this, people will naturally abandon petrol since they are suffocating us,” he said.

An automotive expert, Keinde Samuel, also told Daily Trust that petrol filling stations should be made to install gas filling facilities.

A Lagos-based auto dealer, Femi Olawale, said the first thing the government should have done was to have embarked on a train-the-trainer programme for mechanics and auto technicians across the 36 states of the federation and the FCT.

$20bn required annually to fund gas infrastructure – Expert

The Managing Director/Chief Executive Officer of Eterna Plc, Abiola  Lawal, said Nigeria’s energy sufficiency could be achieved through CNG and LPG if critical stakeholders collaboratively invest in the gas sector.

“Large scale investment in gas infrastructure – $20 billion is required annually. The Presidential CNG Initiative plans to raise over $350 million for CNG infrastructure by 2027,” Lawal said, at the 2024 NAEC annual strategic international conference.

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Manufacturing CNG (Compressed Natural Gas) cylinders requires specialized expertise, equipment, and compliance with international standards. Here’s a detailed guide to help you get started:

Manufacturing Process:

1. Design and engineering
2. Material selection (steel, aluminum, or composite)
3. Forging or spinning
4. Welding and assembly
5. Testing and inspection
6. Certification and labeling

Equipment Needed:

1. Forging machines
2. Spinning machines
3. Welding equipment (e.g., robotic, laser)
4. Testing equipment (e.g., hydrostatic, ultrasonic)
5. Machining tools (e.g., lathes, milling machines)
6. Inspection tools (e.g., X-ray, magnetic particle)

Materials Required:

1. Steel (e.g., 4130, 4140)
2. Aluminum (e.g., 6061, 6063)
3. Composite materials (e.g., carbon fiber, fiberglass)
4. Valves, fittings, and accessories

International Standards:

1. ISO 11119-1 (Gas cylinders – Design, construction and testing)
2. ASME Boiler and Pressure Vessel Code (BPVC)
3. API Specification 5L (Line Pipe)
4. NFPA 52 (Vehicular Natural Gas Fuel Systems)

Manufacturing Costs:

1. Equipment: $500,000 – $2 million
2. Materials: $500,000 – $1 million (depending on production volume)
3. Labor: $200,000 – $500,000 (depending on production volume)
4. Total estimated cost: $1.2 million – $3.5 million

Production Capacity:

1. Small-scale: 100-500 cylinders per month
2. Medium-scale: 500-2,000 cylinders per month
3. Large-scale: 2,000-5,000 cylinders per month

Certifications and Training:

1. ASME certification
2. API certification
3. ISO 9001:2015 quality management system
4. Training for welding, testing, and inspection

Regulatory Compliance:

1. Obtain necessary permits and licenses
2. Comply with local regulations (e.g., environmental, safety)
3. Adhere to international standards and certifications

The post Requirements of Manufacturing CNG (Compressed Natural Gas) cylinders, Here’s a detailed guide to help you get started: appeared first on Go-CNG (Flexible CNG Finance)..

L-R:  Director-General, Federal Radio Corporation of Nigeria (FRCN), Dr Bulama Muhammad; Executive Vice Chairman/CEO of National Agency for Science and Engineering Infrastructure (NASENI), Khalil Suleiman Halilu; CEO of Portland Gas Limited, Mr. Folajimi Mohammed (4th right) and Program Director, Presidential Initiative on Compressed Natural Gas (Pi-CNG). Engr. Michael Oluwagbemi inspecting a CNG vehicle during the launch of PI-CNG’s Ride-Share CNG Conversion Incentive Program and My-CNG App at the NASENI-Portland Conversion Centre, Utako , Abuja

The National Agency for Science and Engineering Infrastructure (NASENI) has offered a 50 per cent discount on their car CNG-conversion to drivers who sign up and use the newly launched MY-CNG App. The incentive is especially aimed at helping players in the rideshare sector, including Uber and Bolt drivers to seamlessly convert to CNG.

This was made known by the Executive Vice Chairman and CEO, Khalil Suleiman Halilu over the weekend during the launch of the Presidential CNG Initiative’s (Pi-CNG) Conversion Incentive Program for the rideshare sector, alongside the introduction of the MY-CNG App.

According to him, the launch of the MY-CNG App and the Conversion Incentive Program reflect NASENI’s commitment to leveraging technology to drive national transformation.

This launch took place at NASENI’s Compressed Natural Gas Engineering, Training, and Conversion facility in Utako, reflecting the Agency’s commitment to pioneering technology-driven solutions for Nigeria.

Read also: “Founding Shap Shap, starting an NGO, and becoming NASENI chief at 32” Here’s the story of Khalil Halilu

It was graced by the Honourable Minister of State (Gas), Petroleum Resources, Hon. Ekperipe Ekpo, who served as the Special Guest of Honour, alongside the Honorable Minister for Information and National Orientation, who was represented by the Director-General of Federal Radio Corporation of Nigeria (FRCN), Dr Muhammed Bulama and other ecosystem players.

Program Director Pi-CNG. Engr. Michael Oluwagbemi (6th from left); EVC/CEO OF NASENI, Khalil Suleiman Halilu(5th from left): DG FRCN, Dr Bulama Muhammad (4th from right) and  CEO of Portland Gas Limited, Mr Folajimi Mohammed (4th from left) at the launch of PI-CNG’s Ride-Share  CNG Conversion Incentive Program and My-CNG App at the NASENI-Portland Conversion Centre, Utako, AbujaIn his remarks, the EVC/CEO of NASENI, Khalil Halilu emphasized the significance of Pi-CNG in Nigeria’s gas revolution, noting that the Initiative has quickly become central to discussions on the nation’s energy future.

“A little over two months ago, we commissioned this all-in-one CNG facility in partnership with Portland and Dana Motors. This joint venture is part of NASENI’s vision to accelerate the delivery of market-ready products that reduce the cost of living, improve quality of life, and support President Bola Ahmed Tinubu’s Renewed Hope Agenda,” he stated.

Halilu also highlighted the importance of collaboration in achieving these milestones, commending partners Pi-CNG, Portland, and Dana Motors for their dedication. “Working together, we can and will transform Nigeria’s energy and transportation sectors,” he affirmed.

“CNG is a cleaner, more affordable vehicle fuel, with the potential to reduce transportation costs by up to 70 per cent and deliver 40 per cent savings for car owners,” the EVC/CEO explained. He stressed that this initiative is a response to the current economic challenges, offering a viable solution to reduce the cost of living for Nigerians.

He concluded by reiterating NASENI’s role as a technology enabler, partnering with the private sector to bring innovative solutions to market and support national development goals, including energy efficiency, climate action, job creation and poverty alleviation.

NASENI remains Nigeria’s leading technology-transfer agency, purposely built to foster innovation, research, and development to support the country’s industrial growth and economic sustainability.

Recall that the federal government received 68 hybrid CNG Jet Mover buses from Jet Motor Company, an indigenous car manufacturing company, last. week. The hybrid Jet Mover runs on Compressed Natural Gas (CNG) and Premium Motor Spirit (PMS) commonly called PMS.

The vehicles were handed over to a team of officials from the Ministry of Finance and representatives of the Presidential Initiative for Compressed Natural Gas (P-CNGi) during a brief ceremony at the company’s plant in the Ajah area of Lagos State.

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Rt. Hon. Ekperikpe Ekpo is the Honourable Minister of State, Petroleum Resources (Gas)

…Rideshare vehicles get 50% conversion discount

The Federal Government on Friday moved to significantly lower the cost of fare charged by E-hailing taxis with a 50 percent conversion discount to Compressed Natural Gas, CNG  My greatest challenge Is creating opportunities to show that arts can be commercialized in many….

The government said it believes that lowering the cost of transportation across the country would translate into a lower cost of living for Nigerians.

Speaking at the launch of the Rideshare CNG conversion incentive programme and my CNG app, the Minister of State Petroleum Resources (Gas), Hon Ekperikpe Ekpo urged rideshare drivers to take advantage of the incentives being offered by the government.

Mr. Ekpo explained that “the rideshare sector is a vital part of our urban transportation system, providing flexible and cost-effective mobility solutions to millions of Nigerians, particularly our youth. However, the rising costs of traditional fuels have posed a significant challenge to both drivers and passengers, often leading to higher fares and reduced access to affordable transportation.

“The CNG Conversion Incentive Program, in conjunction with the My CNG App, is a bold response to these challenges. By offering a 50% discount for rideshare drivers upon sign-up and scheduling through the My CNG App, we are not only making CNG a more viable option but also easing the financial burden on drivers. This will translate to more affordable transportation options for the users”, he added.

He pointed out that by choosing CNG, rideshare drivers would not only be saving costs but also contributing to the larger goal of national development.

Earlier, the Programme Director/CEO, Presidential Compressed Natural Gas Initiative, PCNGI, Engr Michael Oluwagbemi highlighted the significance of the e-hailing taxi service in the economy, disclosing that in 2020, the sector generated $290 million in revenues with seven million people using the service.

Oluwagbemi said: “Indeed, we know that transportation is responsible for about 14% to 15% of an average family’s spending. It contributes about 1.5% to the overall economy, with an average of 5.1% growth on a year-to-year basis”.

He pointed out that in Nigeria the vehicle-to-population ratio is about 60 vehicles to 1,000 people “with 41.1% of the about 12 million vehicles in Nigeria are privately owned, with vehicle ownership concentrated in our urban areas.

“This means that the real opportunity for moving people around in an environment where there is no vehicle ownership is this ride-share technology that has become available across the land in the last 10 years. The global ride-hailing market is valued at about $130 billion as of 2020, and is anticipated to reach a value of $230 billion by 2026, registering about 8.75% growth between 2021 and 2026.

“In 2020, revenues generated in Africa alone from the ride-share industry was about $2.5 billion, with Nigeria accounting for about $292 billion of that, and also accounting for 15% of the 48.6 million people that use ride-shares.

“This is quite significant. That means Nigeria accounts for about 7 million people using ride-share that used ride-share in 2020. Our young people in our cities, from Lagos to Ibadan, to Ilorin to Ado Ekiti, to Lokoja, Abuja, Kaduna, Kano, Uyo, Port Harcourt, Aba, Onitsha, all the way to Benin City, to Maiduguri, all utilize ride-share services”.

Oluwagbemi explained that the use of CNG would reduce cost of fueling for the cab drivers by about 70 percent, significantly lower their cost of operation and fare price for passengers.

On his part, the Managing Director, NASENI Portland Gas Limited, Mr. Folajimi Mohammed said the Presidential CNG initiative has been instrumental in “paving the way for innovations that will reshape the way we think about transportation and energy consumption in our

country”.

Mohammed noted that the Rideshare CNG Conversion Incentive Programme is part of efforts to encourage the adoption of CNG among rideshare drivers.

“This program is a game-changer, offering substantial incentives for drivers to convert their vehicles to CNG, thereby reducing emission, greenhouse gas emission, and

lowering fuel costs as well. It is a win-win for both the environment and the economy, and we at Portland Gas are fully committed to supporting this initiative in every way possible”, he added.

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Earlier in the month, President Bola Tinubu said his administration had deployed compressed natural gas (CNG) consumption buses, across the nation.

The move is part of plans to cut transport costs occasioned by the country’s exit from the petrol subsidy regime.

The president, delivering his Independence Day speech, had said “new CNG conversion kits will start coming in very soon as all hands are on deck to fast track the usually lengthy procurement process”.

Tinubu said a new chapter had been flipped in the public transportation sector through the deployment of “cheaper, safer CNG” buses across the nation.

CNG vehicles and conversion tools have been deeply entrenched in the federal government’s palliative programme since the subsidy was removed in May.

While the authorities are of the view that the innovation would ease the cost of commuting, it also comes as a strategy to avert protests by labour unions and keep Nigerians off the streets over rising energy costs.

The new drive for the deployment of CNG-powered vehicles led to the provision of N100 billion for the acquisition of 3,000 units of 20-seater buses by the federal government.

Last Friday, the federal government flagged off the presidential compressed natural gas initiative (PCNGI), waiving value-added tax (VAT) on CNG bus purchases.

Here are some key things to know about CNG buses as the implementation of the programme officially commences.

WHAT ARE CNG-POWERED BUSES?

CNG is natural gas that remains clear, odorless, and non-corrosive; serving as an alternative to petrol.

It is compressed to the point where it is lighter than air — usually approximately one percent of its original volume.

In the transport sector, CNG is utilized as a cleaner and cost-effective alternative to conventional petrol and diesel fuels.

A by-product of coal mining or crude oil production, CNG comprises mainly hydrocarbon gasses and vapor, and contains predominantly methane.

Simply put, CNG-powered vehicles run on gas, operating like petrol-powered vehicles with spark internal combustion engines.

IS IT CHEAPER?

As mentioned earlier, Tinubu had put an end to under-recovery payment when he said “subsidy is gone” in May. While the statement ended the decade-long subsidy payments, it also jacked up the pump price of petrol — a major fuel used by commercial vehicles — by over 100 percent.

Transport costs also soared across the country as a result, rekindling conversations around halting the dependence on petrol

On June 8, oil marketers pledged to donate 100 mass transit CNG buses to mitigate the effects of the removal of the subsidy, canvassing for the adoption of gas as an alternative source of energy.

Speaking during the Independence Day ceremony, Tinubu said the CNG buses will operate at a fraction of current petrol prices, positively affecting transport fares.

Also, oil marketers said CNG, when fully deployed, will be over 400 percent cheaper than petrol.

But Jide Pratt, an energy expert, told TheCable that the use of CNG to fuel vehicles would result in about 40 percent potential cost savings.

“To compare (CNG) with PMS, we will have a savings on fuel by about 30 to 40% circa and when you compare the mileage it’s probably just marginally better,” he said.

The main downside, he said, is that it takes a while longer to build the infrastructure for CNG “i.e the plants for holding CNG and load or refill locations compared to PMS outlets”.

CNG PER KG TO COST N230

Toyin Subaru, special assistant to the president on special duties and domestic affairs, had said CNG will cost N230 per kg as against petrol which is sold at a higher price.

“We are going to develop an app that will enable you locate where a CNG station is located. We should be able to buy gas for our cars at N230 per KG as against the cost of petrol which is N680 per litre,” he said.

The presidential aide said this would help every Nigerian save about two-thirds of their transport cost.

Subaru added that the federal government plans to have one million CNG vehicles on Nigerian roads by 2027.

According to the Nigerian Gas Association (NGA), CNG is suitable for petrol cars, tricycles, vans, and lorries — but not petrol generators.

WHY CNG?

In December 2020, the federal government rolled out its National Gas Expansion Program (NGEP), which involves the conversion of cars and generators from petrol to gas.

The government had said the programme, which was expected to deliver at least one million vehicle conversions by the end of 2021, was in tandem with its plan to create cheaper alternative fuel for equipment and vehicles.

With Nigeria’s abundant gas reserves of over 200 trillion cubic feet, CNG is seen as a more viable option.

According to a research publication authored by Chikwendu Ubani and Ikpaisong S. Ubong, running vehicles on CNG would greatly reduce the “troubles” encountered in importing fuel into the country.

“This will also cut down largely the hardly available foreign exchange expended in bringing in PMS for fuelling vehicles,” the researchers said.

In addition, CNG cars are said to run quieter than petrol and diesel vehicles, which results in less noise pollution; and also produces fewer emissions and can improve energy security.

“What will happen is that cost savings should have a direct impact on transportation costs,” Pratt said.

“I do think as we go the CNG road we should adopt the LPG strategy as well, as it’s a lower hanging fruit; as skid tanks are easily installed in current retail outlets and trucks are readily available or can be purchased.”

Although the autogas programme was initially stalled, the present administration has shown interest in fast-tracking its implementation.

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