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Friday, February 23, 2024

FG plans to convert 10 million vehicles to CNG in ambitious green drive

Initiative Aims to Create Jobs, Save on Subsidies, and Reduce Carbon Emissions

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In a bold move towards environmental sustainability, the Federal Government has unveiled plans to convert 10 million Premium Motor Spirit (PMS) vehicles to compressed natural gas (CNG) within the next 36 months. This ambitious initiative, announced by Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, during the ADIPEC 2023 conference in Abu Dhabi, is a collaboration with the private sector.

Ekpo, speaking at the “Energy Talk” panel, outlined the key objectives of the initiative. The government, in partnership with the private sector, aims to roll out over two million free CNG conversion kits within the next nine months to encourage the adoption of CNG as the primary fuel for vehicles nationwide. The overarching goal is to transition 10 million vehicles from PMS to CNG over the next three years.

The Minister emphasized the numerous benefits of the initiative, including the creation of over 100,000 jobs, reduced government spending on subsidies for PMS importation, and a significant reduction in carbon emissions due to the use of clean gas in internal combustion engines.

Ekpo reiterated the Federal Government’s commitment to providing a conducive operational and fiscal environment to support investments in the upstream, midstream, and downstream gas sectors. He highlighted President Bola Ahmed Tinubu’s dedication to promoting gas commercialization in Nigeria for both domestic and export purposes.

The Minister, leading the Nigerian delegation at the event, outlined several key initiatives aligned with the government’s efforts to drive gas-based industrialization and decarbonization. These initiatives include the Decade of Gas (covering upstream, midstream, and downstream activities), ensuring widespread access to cooking gas and CNG for vehicles, implementing a gas flare commercialization program, and promoting the use of gas in petrochemicals.

Additionally, Ekpo informed the audience about specific policy changes geared towards gas pricing regimes, non-associated gas acreage development, and the review of production sharing contracts. These changes, estimated to attract investments exceeding $20 billion, aim to foster offshore and deep-water acreage development in Nigeria.

The Minister assured that the Ministry is working closely with relevant parastatals to present these reforms to the upper legislative chamber for approval and subsequent endorsement by President Bola Ahmed Tinubu. This comprehensive strategy reflects the government’s commitment to sustainable energy practices and the broader goal of positioning Nigeria as a leader in the global energy transition.

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