• Saturday, June 22, 2024
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Sagas invests $20m to kick-start gas for fuel project

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A leading energy and gas sector player, Sagas has entered into a multi-billion gas sales agreement with the Nigeria gas Company (NGC) Limited for the distribution of compressed natural gas for use as an alternative fuel for automobiles and industries.

In a major leap towards effective use of the abundant natural gas by motorists and industries in place of petrol and diesel, Sagas, a division of Borkir Energy Company, a subsidiary of Dangote Group said it has already invested $20 million dollars towards laying the necessary infrastructures for the scheme to commence nationwide.

Chairman of Borkir, Sanni Dangote disclosed that the agreement covered a 20 year uninterrupted supply of gas by the NGC to Sagas which in turn will compress the gas for use by motorists whose vehicles would be converted to make use of the energy.

Speaking on the occasion of the agreement signing ceremony in Lagos, Dangote explained that the novel scheme which will reduce gas flaring involves Sagas getting high pressured gas from the NGC through its vast network of pipelines and compressing it to a cheaper, cleaner and sustainable alternative fuel or dual fuel for a profitable business.

He stated that the agreement signing was the beginning of a new era in gas utilization in Nigeria saying his company has kick-started the necessary process to provide gas as an alternative to automobile and industrial fuel.

The Borkir boss said vehicles would be converted to be able to use the gas and that conversion centers would be established at various points across the federation even as he disclosed that such a center had been opened at Ikeja already in joint partnership with a foreign firm adding that kits for conversion are of best quality with no effect on vehicle engines.

Dangote further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Group’s 5, 000 trucks which are being converted for dual-fuel usage (Gas and Diesel), with the hope of converting 20, 000 vehicles within the next one year of take-off.

While pointing out that the advantages of the use of gas as an alternative fuel for vehicles far outweigh the use of petrol or diesel, he noted that the gas is readily available in large quantities, environmentally friendly, has guaranteed price stability and engine durability.

His company according to him has invested more than $20 million on the project so far and would still invest more funds as the scheme is extended to cover more vehicles with more gas filling stations and conversion centers established across the country.

Meanwhile, Borkir, he said, would embark on public enlightenment and demonstration of the process to show how safe, cost-effective and friendly the use of gas to motorists.

He then gave the value and service portfolio of Borkir to include; CNG Supply & Distribution through Mother stations, CNG Tube Trailers, Daughter Stations and Storage Systems; Off-site/public CNG Retail Stations – All-fuel retail service stations for CNG, AGO, PMS and DPK located strategically along the major traffic routes; On-site CNG Fuelling Stations for industrial and commercial customer locations; Vehicle Conversion Facility and Industrial application conversion/support Services for Dual Fuel (Diesel and CNG) usage; Vehicle Fitness Check-Up Station and advisory Services(whether turnkey or bespoke) on sourcing and installation of infrastructure and equipment for CNG and management of CNG systems.