• Sunday, September 22, 2024
businessday logo

BusinessDay

NGA predicts 70% cost savings for FG with gas-powered transport

NGA predicts 70% cost savings for FG with gas-powered transport

The Nigerian Gas Association (NGA) has projected a 70 percent reduction in operating costs for the federal government if it transitions its vehicle fleet to gas-powered options.

In a statement shared with BusinessDay, NGA called on the Nigerian government to implement a transportation policy mandating the use of gas-powered vehicles for government officials.

Akachukwu Nwokedi, president of the NGA, highlighted the broader implications of this shift toward natural gas-powered transportation.

Read also: Nigeria can cut cost, greenhouse gas emission by 80% with alternative fuels – Ogungbangbe

“The transition to gas is not just an environmental imperative but an economic one. With potential operational cost savings of up to 70%, natural gas represents a tremendous opportunity for Nigeria’s economy to become more efficient and eco-friendlier,” he stated, instilling a sense of optimism about the probable growth of Nigeria’s economy.

The NGA’s president also congratulated Greenville LNG on completing its second test drive of LNG-powered trains, marking another milestone in Nigeria’s ongoing gas initiative.

“We are excited to see projects like Greenville LNG contributing to Nigeria’s Gas Initiative. It’s a shining example of how sustainable energy can drive positive change in the economy and the environment,” Nwokedi added.

“This project is pivotal in the country’s transition to sustainable energy solutions. It reinforces the NGA’s advocacy for natural gas as the preferred energy source for driving economic growth and reducing the nation’s carbon footprint by using its abundant gas reserves,” NGA said in its statement.

NGA noted that Fueling Nigeria’s rail transportation system with natural gas is part of a larger initiative to transform the country’s transportation sector by reducing carbon emissions and promoting energy efficiency.

The NGA commended the government’s incremental adoption of Compressed Natural Gas (CNG) for transportation and emphasised the importance of sustaining the momentum.

Read also: FG concludes final investment decision on $550m upstream gas project 

The association acknowledged the efforts of the Presidential Compressed Natural Gas Initiative (PiCNG) in deploying CNG conversion kits and urged the organisation to improve its gains in advancing CNG as a viable alternative energy source.

“NGA continues to champion eco-friendly practices and the transition to gas-powered solutions, encouraging both public and private sectors to embrace natural gas as a cleaner, more sustainable fuel option. This commitment inspires and motivates the audience to join the NGA in their advocacy for natural gas,” NGA, a leading voice of Nigeria’s gas industry said.