Facebook with Latestnigeriannews  Twieet with latestnigeriannews  RSS Page Feed
Home  |  All Headlines  |  Punch  |  Thisday  |  Daily Sun  |  Vanguard   |  Guardian  |  The Nation  |  Daily Times  |  Daily Trust  |  Daily Independent
World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  More Channels...

Viewing Mode:

Archive:

  1.     Tool Tips    
  2.    Collapsible   
  3.    Collapsed     
Click to view all Entertainment headlines today

Click to view all Sports headlines today

Private Sector Investments Threaten Fgs Policy On Compressed Natural GasExperts

Published by Leadership on Sun, 16 Apr 2017


Federal governments move to deepen the use of compressed natural gas (CNG) is being threatened by setbacks being experienced with private sector investments in the sub sector.Experts have described the market as potentially huge, attractive and capable of raking in conservatively N200 billion in revenue if properly coordinated and supported by governments policy.Expressing concern, however, about the multi-billion dollar CNG industry, they contended that governments policy appeared not to encourage private investment in the sub sector, pointing out that this might truncate the overall intention and kill the idea.The federal government, in a bid to underscore the potential of the midstream sub-sector of the oil industry, developed a Gas Master Plan (NGMP) which presents potentials for stimulating the countrys economic growth by harnessing her abundant natural gas reserves, and also offering investment opportunities in natural gas conversion for various uses.As a way to reduce over dependence on petrol for vehicles, former Minister of Petroleum Resources, Dr Rilwanu Lukman, had in 2010 at the commissioning of a CNG plant that would dispense gas to vehicles that have been converted to the use of gas in Edo State built by NipCo Plc said government hoped that by 2015, at least two million vehicles would be running on compressed natural gas (CNG) instead of petrol. He said the use of gas is almost 35 percent lower than petrol in mile to mile comparison.Lukman listed the advantages of CNG conversion as reducing the importation of refined fuel, reduction in subsidy being paid by government, elimination of sole dependence on oil refineries, among others.He pointed out that the project signaled governments commitment towards resolving the fuel crisis in Nigeria and would enable the nation effectively utilize its gas reserve put at that time at 187 trillion cubit feet, placing it as the seventh largest gas reserve in the world. The cost of the project in the state, which included three CNG stations, a conversion workshop, was put at over $120 million.However, seven years after, only an estimated 5,000 vehicles are said to be running on CNG leaving a huge gap. Industry operators believe it is possible to achieve up to 60 percent cost saving by utilising gas as alternative energy source. CNG is extremely competitively priced compared to conventional fuels, and will always enjoy an alternative cost saving energy solution,A special adviser to former President Olusegun Obasanjo on petroleum, Ibrahim Mohammed, told LEADERSHIP Sunday while speaking on the failure of the project that the Obasanjo administration conceived the idea to add value to the oil industry midstream value chain.Saying the administration offered incentives to potential investors in its determination to pursue coordinated approach towards harnessing the countrys huge gas reserves, he explained that government then focused on job creation, enhancing domestic gas utilisation for power generation and developing the Liquefied Petroleum Gas (LPG) also called cooking gas as well as boosting local industries.Today, according to Mohammed, there is lack of coordination and clear policy on deepening the CNG investment with efforts being geared toward LNG and export.I want to tell you, the idea of deepening LNG export to generate revenue is not bad, but it is important to explain that expanding gas utilisation like the CNG will create jobs as more outlets will come on stream that will employ attendants, develop local capacity in engineering for conversion of vehicles from petrol to CNG. So a cubic meter of gas exported is job loss to Nigerians, he said.He pointed out that about 4,000 vehicles so far converted were being driven in Edo State, while 1,000 others were in Ibafon, Ogun State, adding that if we can develop this subsector, we will not only stop wastages, but will conserve about $10 billion spent on petrol importation annually.About 45 million litres of fuel are believed to be consumed daily across the country, while the nations major refineries could scarcely produce 12 million litres of the product. The development leaves the country with no option than to continue to import the product, which is currently facing serious constraints as a result of foreign exchange scarcity in the country.Available data shows that currently, 25 million natural gas vehicles are circulating in the world consuming about 1000 billion cubic feet of gas annually. The growth in the use of natural gas for vehicles in the world hit 30 percent in the last three years.The managing director of NipCo Plc, Mr Venkataraman Venkatatapathy estimates that compressed natural gas can earn the federal government over N200 billion from one million cars converted into CNG from petrol engine.The head of energy research desk of Ecobank Plc, Dolapo Oni told LEADERSHIP Sunday that development of CNG plants would generate more revenue for government and reduce petrol importation, adding more gas utilisation would propel investment in gas exploration and also boost the countrys reserve base.More gas utilisation will create new opportunities that will drive exploration of gas. If investors see increase in demand, they will invest in the sector. Today the Department of Petroleum Resources (DPR) put Nigerias gas reserve at 190 trillion cubic feet but I see the reserve increase with investment coming in the area of utilisation especially in the local market Oni added.LEADERSHIP Sunday reports that CNG is a natural gas (methane) that has been put under high pressure, and is the cleanest renewable energy source. It costs about N35,000 to convert a petrol engine to CNG, it was gathered.Apart from NipCo, there are other firms that have ventured into this segment of business. For instance, Luxxor Gas commenced the development of the largest private CNG mother station in Africa, a mighty 30,000 standard cubic meter, scm/hr, capacity production volume in Ogijo, Ogun State with additional new production line in Ota in the same state.The development of both CNG mother stations with a production volume of 15,000 scm/hr gives the company competitive advantage in the CNG industry by potentially obtaining natural gas from two gas suppliers, Shell Nigerian Gas Company and Nigerian Gas Company.An inter-state commercial vehicle operator, Mr. Tosin Olamide, sharing his experience with our correspondent, said he fills his mini truck with N2,600 worth of CNG as against N7,300 of petrol. Another operator, Tunde Olabisi spends N6,500 to fill his tank and it takes him from Ibafo to Ilorin compared to N21,000 for petrol on the same trip.
Click here to read full news..

All Channels Nigerian Dailies: Punch  |  Vanguard   |  The Nation  |  Thisday  |  Daily Sun  |  Guardian  |  Daily Times  |  Daily Trust  |  Daily Independent  |   The Herald  |  Tribune  |  Leadership  |  National Mirror  |  BusinessDay  |  New Telegraph  |  Peoples Daily  |  Blueprint  |  Nigerian Pilot  |  Sahara Reporters  |  Premium Times  |  The Cable  |  PM News  |  APO Africa Newsroom

Categories Today: World  |  Sports  |  Technology  |  Entertainment  |  Business  |  Politics  |  Columns  |  All Headlines Today

Entertainment (Local): Linda Ikeji  |  Bella Naija  |  Tori  |  Daily News 24  |  Pulse  |  The NET  |  DailyPost  |  Information Nigeria  |  Gistlover  |  Lailas Blog  |  Miss Petite  |  Olufamous  |  Stella Dimoko Korkus Blog  |  Ynaija  |  All Entertainment News Today

Entertainment (World): TMZ  |  Daily Mail  |  Huffington Post

Sports: Goal  |  African Football  |  Bleacher Report  |  FTBpro  |  Kickoff  |  All Sports Headlines Today

Business & Finance: Nairametrics  |  Nigerian Tenders  |  Business Insider  |  Forbes  |  Entrepreneur  |  The Economist  |  BusinessTech  |  Financial Watch  |  BusinessDay  |  All Business News Headlines Today

Technology (Local): Techpoint  |  TechMoran  |  TechCity  |  Innovation Village  |  IT News Africa  |  Technology Times  |  Technext  |  Techcabal  |  All Technology News Headlines Today

Technology (World): Techcrunch  |  Techmeme  |  Slashdot  |  Wired  |  Hackers News  |  Engadget  |  Pocket Lint  |  The Verge

International Networks:   |  CNN  |  BBC  |  Al Jazeera  |  Yahoo

Forum:   |  Nairaland  |  Naij

Other Links: Home   |  Nigerian Jobs