Dangote Cement eyes 1,500 CNG trucks for Nigeria operation

…rolls out 300 CNG trucks H1 2024

Dangote Cement Plc has targeted the deployment of 1,500 Compressed Natural Gas (CNG) delivery trucks across its Nigerian operations as a step toward cleaner energy adoption in the country.

Arvind Pathak, the Group Managing Director of Dangote Cement, disclosed this today at the company’s virtual conference call for investors and analysts.

“We are procuring 1,500 CNG trucks and progressively we plan to phase out the aging of our diesel-powered trucks and replace them with 100 percent CNG trucks,” he said.

According to Pathak, the company’s plan to phase out diesel-powered trucks for CNG-powered trucks started four years ago. “In those eras, we used to have a dual-fired engine, which means it’s both partially on CNG and partially on diesel. And we have approximately around 1,400 trucks of that vintage.”

Meanwhile, the company has incorporated 300 CNG-powered trucks into its fleet in just the first six months of 2024, as outlined in its unaudited financial results.

At the company’s 15th Annual General Meeting (AGM) held in Lagos two months ago, Aliko Dangote, chairman of the company, revealed the commitment by the company to transitioning thousands of its delivery trucks to run on CNG by 2025.

He said the decision was to add to the Federal Government’s quest towards reducing dependence on fossil fuel, thereby enhancing the nation’s energy independence and contributing to a more secure energy future.

“We are now going to start using CNG vehicles, especially with the new policy of the Federal Government, launched by the Renewed Hope Agenda by His Excellency, President Bola Tinubu.

“By the end of next year, all our trucks that are operating in the company will be running on CNG, and that is a whole lot of money that we are going to invest. But we are equal to the task, and we will continue to push and make sure that we continue to make our shareholders happy.”

In April, President Tinubu directed the mandatory procurement of compressed-natural-gas-powered vehicles by all government ministries, departments, and agencies in line with his commitment to ensuring energy security, driving utility, and cutting high fuel costs.

Alluding to what Dangote said on the use of CNG as an alternative fuel for its cement trucks, Pathak noted that in response to the heightened inflationary environment, “we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins.

“These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full CNG trucks.”