FG, Private Sector to Subsidize CNG Vehicle Conversion, says CEO Portland Gas, Mohammed

• The CEO of Portland Gas Limited, Folajimi Mohammed, announced that the federal government has made a move to subsidize CNG vehicle conversions
• The new conversion center is to facilitate the local manufacture of conversion kits
• Mohammed emphasized the significant cost savings of using CNG over PMS for vehicle fuel, as well as the environmental benefits

FCT, Abuja-The private sector is collaborating with the Presidential CNG Initiative (Pi-CNG) to provide subsidized vehicle conversions from PMS to CNG.

Mr. Folajimi Mohammed, the CEO of Portland Gas Limited, announced this at the inauguration of the All-One Compressed Natural Gas (CNG) Reverse-Engineering, Training, Filling, and Conversion Centre, on Friday, May 31, in Abuja.

FG inaugurates CNG conversion center

As reported by Vanguard, the center was established by the National Agency for Science and Engineering Infrastructure (NASENI) in collaboration with Portland Gas Limited.

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He said:

“One of the President’s first initiatives was the Initiative (Pi-CNG), which was the initiative to introduce the Compressed Natural Gas. So, Portland Gas-NASENI has been working in partnership with the Pi-CNG.

They will be tasked with introducing and supplying the conversion kits and we are hopeful that the conversion kits will be supplied to us using a subsidized price while we make sure that it’s available and cheap for every average Nigerian.

“The immediate intervention we need right now is for us the private sector to partner with the government in terms of subsidized kits that will be given to us.”

Engineering plant to enable locally-made conversion kits

Mohammed, however, expressed optimism that with the takeoff of the reverse engineering plant in partnership with NASENI, conversion kits would be manufactured locally, which would significantly reduce the impact of the conversion cost on Nigerians, Leadership reported.

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He noted that CNG offers a sustainable and economically viable alternative to traditional petroleum products, with the potential to bring transformative changes to the country.

He said:

“On average, a petrol vehicle consumes about 60 liters of Premium Motor Spirit (PMS) to travel 250 kilometers, costing approximately 37,020 NGN, given current fuel prices. In contrast, a CNG vehicle requires about 18 standard cubic meters (scm) of gas for the same distance, costing around 3,600 NGN.

“For a 250 km drive, this translates to a significant cost saving, highlighting the economic benefits of CNG over PMS. CNG and hybrid vehicles offer better efficiency and lower emissions and by embracing CNG, we reduce our transportation costs and contribute to a cleaner environment.”

Mohammed, therefore, commended president Tinubu for recently commissioning three new upstream gas facilities which he said would significantly boost the nation’s gas production capabilities and provide the foundation for expanding CNG infrastructure.

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FG deploys CNG buses, tricycles in Kwara state

In a related development, Legit.ng reported that starting in Ilorin, the capital of Kwara State, the Federal Government has begun deploying buses and tricycles that run on compressed natural gas.

However, president Bola Tinubu had earlier announced that the presidency was prepared to launch roughly 2,700 CNG-powered buses and tricycles.

Also, the federal government planned to deploy 60 refueling sites and 100 conversion workshops throughout 18 states before the end of 2024.

Source: Legit.ng