FG to Deploy 500 CNG Stations

The Federal Government is preparing to roll out 500 Compressed Natural Gas (CNG) stations across the country within the next three years, a move aimed at fast-tracking Nigeria’s shift to cleaner, cheaper fuel alternatives and reducing reliance on petrol. This development comes after the Midstream and Downstream Gas Infrastructure Fund (MDGIF) finalized talks with Chinese manufacturer Endurance Group on building large-scale CNG infrastructure. The MDGIF’s Executive Director, Oluwole Adama, announced the outcome in a statement released on Sunday.

Adama explained that the discussions concluded with an agreement to establish a Special Purpose Vehicle (SPV) that will be responsible for executing the nationwide project. The new entity will be jointly promoted by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners. According to him, this collaborative structure is designed to ensure efficient financing, deployment, and management of the infrastructure.

The SPV  to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo)  will oversee the installation of 500 integrated CNG stations, the development of LCNG supply networks, and the provision of CNG and LNG haulage trucks equipped with cascades for nationwide distribution. These trucks will act as a virtual pipeline system, enabling the transportation of gas to areas without direct pipeline access.

Adama noted that the cooperation between the parties signals a strong commitment to expanding Nigeria’s gas-to-mobility sector. He said the initiative will help address the current shortage of refuelling stations, which has led to lengthy queues at the few facilities currently available. By expanding access and improving logistics, the project aims to guarantee a steady supply of gas to motorists and fleet operators.

The initiative is part of a broader government push to promote gas as a more affordable fuel option following the elimination of petrol subsidies and the deregulation of the downstream sector. Officials maintain that accelerating the use of auto-CNG is crucial for reducing transportation costs, enhancing energy affordability, and cutting the country’s dependence on foreign exchange for fuel imports. Despite holding more than 200 trillion cubic feet of proven natural gas reserves, Nigeria has struggled to build the infrastructure required to harness this resource effectively.

A cornerstone of the Presidential Compressed Natural Gas Initiative launched in 2023, the new CNG stations are expected to significantly reduce the nation’s reliance on petrol (PMS) and diesel. The Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo project is fully aligned with President Bola Tinubu’s objectives for energy security and economic revitalization. He added that it will help drive investments and generate employment opportunities along the gas value chain.

Endurance Group’s Chief Executive Officer, Eric Lin, said the SPV intends to establish a nationwide network that supports refuelling, maintenance, and logistics by leasing CNG equipment to certified operators. He emphasized that the virtual pipeline model will ensure consistent gas flow from strategically positioned mother stations to underserved regions and high-demand urban centres.

When fully implemented, the project is expected to expand access to gas-powered transportation, reduce dependence on expensive imported fuels, and support Nigeria’s ongoing transition to cleaner energy.