• Sunday, June 23, 2024
businessday logo

BusinessDay

Subsidy removal: Nasarawa, private coy begins construction of LNG, LCNG projects

Subsidy removal: Nasarawa, private coy begins construction of LNG, LCNG projects

Gov Abdullahi Sule of Nasarawa State on Wednesday, inaugurated the construction of 23 metric tonnes Liquefied Natural Gas (LNG) and 1,500 standard cubic metres Liquefied Compressed Natural Gas (LCNG) project in Lafia.

The project in collaboration with Greenville LNG was aimed at providing clean energy; alternative to the use of Premium Motor Spirit (PMS), given the high cost of the commodity since the removal of subsidy by the Federal Government.

Sule, while inaugurating the construction of the project, said it was in line with his administration’s quest for a prosperous and economically developed state.

In his remarks, Ibrahim Abdullahi, Managing Director/Chief Executive Officer of the Nasarawa Investment and Development Agency (NASIDA), said the project was the first of its kind in the North Central zone of the country.

He said that the $2 million USD investment was spearheaded by Greenville LNG, adding that it would be a springboard to other businesses in line with the industrialisation agenda of the State government.

Abdullahi said that the partnership between the government and Greenville LNG was to promote a virtual gas supply for businesses and individuals in Nasarawa State and by extension the North Central region of the country.

“The project will usher in the introduction of LNG and LCNG usage for heavy duty trucks as well as smaller vehicles and tricycles in the region as fuel prices has skyrocketed since the removal of fuel subsidy.

Read also: Lagos residents seek improved, potable water supply

“The project is also poised to revolutionise the transportation industry in Nasarawa State by addressing fuel shortages and enhancing gas usage and distribution within the region.

“By promoting clean energy in the North central region, the project will provide an alternative fuel for diesel operated vehicles, resulting in up to 25 per cent savings on running costs.

“It will also provide opportunities for investors and local businesses in Nasarawa State’s industrial and auto-gas sectors,” Abdullahi added.

Also speaking, Managing Director of Greenville LNG, Ritu Sahajwalla, said the project would further enhance the industrialisation drive of Gov Sule’s administration in bringing more investments into the state.

The managing director was represented at the occasion by the Director of Administration, Joseph Oyadoyin.

He said that the company would also establish another facility in Karu Local Government Area after the completion of the Lafia facility later in the year.

The ceremony also witnessed the official handover of the Certificate of Occupancy (CofO) for the project to the company.

The project was facilitated by NASIDA through the State’s one-stop-shop initiative and the Memorandum of Understanding (MoU) between the Nasarawa state Government and Greenville LNG was signed in November, 2022.