Kano signs $15m deal with STATA Power for customised gas programme

The Kano State Investment Promotion Agency (KANINVEST) has entered into a Memorandum of Understanding (MoU) with STATA Power Utility Nigeria Limited for the implementation of a customised gas programme in the state.

At the MoU signing ceremony held at KANINVEST’s headquarters in Kano on Friday, the Director General of the agency, Muhammad Nazir Halliru, emphasized that the $5 million agreement marks a significant step toward creating a more favorable environment. He highlighted that the project would help reduce greenhouse gas emissions, promote a cleaner, healthier environment, and generate job opportunities.

Halliru explained that the programme would involve the supply of Compressed Natural Gas (CNG) and the conversion of vehicles from using petroleum-based fuels. This initiative aims to address the challenges posed by petroleum prices and transportation in Kano, a key commercial state.

“This aligns with the vision of the current administration, focusing on fostering a better environment by reducing emissions, maintaining a healthier atmosphere, and creating new employment opportunities,” Halliru stated.

He also noted that the supply of CNG would not be limited to vehicles but would also extend to industries and major companies currently using or willing to adopt CNG, which could enhance their production and services.

The implementation of this partnership is expected to commence within six months once the company has set up its gas stations in the state. Halliru mentioned that the approval from the state governor had been secured for the investment, and he hoped that the project would be operational in about six months once the necessary facilities are established. The project will also benefit from tax waivers as a pioneer investment.

On his part, the CEO of STATA Power, Salman Dantata, expressed his excitement about the groundbreaking MoU, which he believes will reduce transportation costs and stimulate industrial growth in Kano.

“This initiative aligns with global shifts towards cleaner energy, economic development, and environmental sustainability. By transitioning to CNG for vehicles, this program will reduce transportation costs, improve air quality, lower carbon emissions, and enhance energy efficiency across Kano State,” Dantata said.

He further revealed that STATA plans to invest up to $15 million over the next two years to deploy LCNG stations across the state. The company also intends to invest in conversion kits and establish conversion centers within the stations.

Within the next year, STATA plans to introduce 5,000 solar-powered tricycles and 10 commercial motor vehicles in Kano. Dantata also shared that the main gas station will be located in the Tamburawa area of Kura Local Government, with a daily capacity of 110 metric tons. Additional stations, each with a capacity of 2 metric tons per day, will be located in Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi Quarters.

Looking ahead, STATA plans to expand to 20 gas stations within five years. The project is expected to create over 300 direct jobs and 5,000 indirect jobs for the state’s youth.