How FG can fast-track CNG adoption as rollout slows

Industry experts have raised concerns over the slow rollout of Compressed Natural Gas (CNG)-powered vehicles as planned by the President Bola Tinubu-led administration, highlighting what needs to be done to fast-track the adoption.

Tinubu, in his inaugural speech in May 2023, announced the removal of petrol subsidies – a development that led to a significant increase in pump prices and the cost of transportation across the country.

In an effort to cushion the impact of the subsidy removal, the federal government launched the Presidential Compressed Natural Gas Initiative, and said in October that it had concluded plans to deploy 11,500 gas-powered buses across the country.

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The government said it had kicked off the initiative with the handover of two CNG-fuelled buses to the management of the State House in Abuja, and the opening of seven pilot conversion centres across the country.

BusinessDay findings have revealed that adoption has been low as some dealers and citizens spoken to said they were not aware of the initiative, and that the government had not proven that it was prepared for the project to work.

Bala Zakka, an oil and gas analyst, questioned the implementation plan of the government, saying that there has to be modalities in place to ensure safety with the use of gas for vehicles.

According to him, the success of the programme heavily relies on skilled technical operators and well-coordinated drilling operations, which is still missing.

He said: “We are not prepared for this, and I know from the onset that it will not work. We have not been able to have enough fuel for cars; how are we going to ensure sufficient gas supply across the country?

“Gas is highly flammable; if we couldn’t effectively control the less flammable materials like diesel and fuel, what has the government put on ground to ensure safety with the use of gas. The success of this programme will require competent technical operators, a more coordinated drilling system. Even the filling stations across the country, how many are ready for this programme? So a lot still has to be put in place.”

“And if we want to look at encouraging conversion of vehicles, the government will need to engage the manufacturers of those vehicles. So the programme needs to be well planned,” he added.

To boost the use of CNG, the government had promised that over 1,000 conversion centres will be opened nationwide in the next few years, with 55,000 conversion kits planned under its palliative programme.

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Under the programme, the government had hoped to create over 2,000 jobs and convert vehicles from petrol to CNG bi-fuel that runs cheaper, cleaner, and better.

Toyin Subaru, special assistant to the President on special duties and domestic affairs, had said CNG would cost N230 per kg as opposed to petrol, which is sold for over N6o0 per litre at most filling stations.

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

Tayo Ibidapo, an Abuja-based energy expert, described the programme as a laudable one, saying it requires a huge investment in infrastructure.

He said: “For it to be successful and sustainable, it requires investment in infrastructure, which cannot be done in a hurry. Building CNG holding plants and refill stations takes longer time and finance compared to fuel stations. This is because CNG is highly flammable and it requires careful and deliberate preparation.

“I do not think we are ready for that now. We were told recently that the government is low on revenue; some civil servants are still being owed salaries.”

Our correspondent who visited some filling stations in the Federal Capital Territory observed that only a few had the facilities for dispensing CNG.

An engineer, who identified himself simply as Musa at an NNPC outlet in the airport road axis of Abuja, told BusinessDay that the turnout of citizens for car conversion has been low.

He said there was a need for the government to educate the public on the programme so as to drive awareness and acceptance.

Uzor Paul, a truck driver along the Lugbe, federal housing axis, cited the unavailability of gas stations as a challenge.

He said: “I thought this car conversion exercise had ended with the Buhari administration, because I did not hear about it after they left power. I was interested in converting my truck during their administration but the conversion cost was very high and CNG is cheaper for me compared to the diesel I use.

“But as this government is trying to come back with the programme, do we even have the filling stations to buy the gas? In the whole of this road, only a few filling stations have that CNG; so how are they going to serve everybody?”

The Buhari-led administration had struggled with the autogas programme, which was launched under the National Gas Expansion Program to herald the nation’s transition from the use of petrol to gas for automobiles as a way of deepening the penetration and utilisation of gas in various forms.