…to save Nigeria over $2b yearly
Former President, Chief Olusegun Obananjo has urged the Federal Government to promote the use of Compressed Natural Gas, CNG and Liquefied Petroleum Gas, LPG in the country. Obasanjo gave the advice during a courtesy visit by the management of NIPCO Plc to Obasanjo Hiltop Estate in Abeokuta to showcase some vehicles running on CNG and LPG and the need for government to promote use of CNG as vehicular fuel. CNG is a natural gas under pressure which remains clear, odorless, and non-corrosive. According to Obasanjo , in order to promote cleaner environment, CNG was signed during his tenure as the president in 2006 to develop gas as vehicular source of fuel. “If other government had had promoted the use of LPG and CNG in Nigerian half of the country’s vehicles would have been converted to gas.
“The essence was to provide alternative to Premium Motor Spirit (PMS) or petrol at a reduced cost and to boost national socio-economic growth.Obasanjo said that aside the economic gains, CNG targeted reduction of unfriendly automobile and exposure of Nigerians to the innovation of powering vehicles on gas. The Managing Director, NIPCO Plc, Mr Venkataraman Venkatapathy said that Nigeria would have saved government over two billion dollars yearly if the use of CNG is promoted in Nigeria. Venkatapathy said that globally, the natural gas industry was increasing its focus and effort to support natural gas transport.He said that the CNG project was between the Nigerian National Petroleum Corporation and NIPCO through a joint-venture scheme called Green Gas Limited.
He explained that the GGL initiative, which is the first of its kind in West Africa, is ushering in a new era of vehicles running on the CNG in Nigeria with its attendant benefits According to him, CNG is a superior auto fuel alternation to liquid fuels mainly petrol and Diesel specially for countries like Nigeria which is blessed with abundant availability of natural.gas which remains untapped. According to him, to replace 20 percent of current petrol consumption of Nigeria, natural gas required is less than five per cent of the total domestic gas consumed currently and less that one of the current gas production.
“This will save the country over two billion dollar yearly on foreign exchange. “In Benin City, Edo State over 4000 vehicles run on CNG which resulted in replacing 20 million litres of petrol from 2012 to 2015, which also saved over nine million dollars to the country,’’ he said. The MD said that CNG has more benefits than petrol, adding some of the benefit includes, low operating cost, lower maintenance cost and it reduced harmful vehicle emissions that cause local air pollution.