Abuja: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a significant increase in the country's Compressed Natural Gas (CNG) conversion capacity, which has surged by over 2,500% in 2024. This development was highlighted by Mr. Farouk Ahmed, the Authority Chief Executive of NMDPRA, during the inaugural Petroleum Industry Stakeholders' Forum organized by the Ministry of Petroleum Resources.
According to News Agency of Nigeria, Mr. Ahmed explained that the NMDPRA has played a crucial role in supporting the Presidential Compressed Natural Gas Initiative (PCNGI) by establishing 186 new conversion centers, which have been instrumental in boosting the conversion capacity across the country. The Authority plans to continue its collaboration with PCNGI to ensure the deployment of CNG infrastructure in major cities like Lagos and Abuja, aiming for up to 100,000 conversions. Additionally, they are working with various states to foster the development of Nigeria Gas Vehicles (NGVs) in other regions.
Mr. Ahmed stated that the development of CNG as a viable alternative to petrol has been incentivized, leading to a rise in the population of Nigerian Gas Vehicles to an estimated 30,000 to 50,000 vehicles and trucks, with the number continuing to grow. Investments exceeding 400 million dollars have been attracted for the construction of 86 daughter stations and 65 mother stations, significantly increasing Nigeria's refueling capacity from 20 to 56 stations.
The NMDPRA is also collaborating with the Standards Organisation of Nigeria (SON), National Automotive Design and Development Council (NADDC), and the National Institute of Transportation Technology (NITT) to ensure that mobility CNG growth is achieved safely and sustainably. The collaboration has led to the development of standards and the NGV Monitoring System, which is expected to be inaugurated this year.
Despite the progress, Mr. Ahmed highlighted several challenges facing the initiative, including the establishment and operation of petroleum handling facilities without proper licensing, permits, and authorizations. He also pointed out poor collaborations for Open/third party access to facilities and a lack of cooperation from some operators for effective regulatory oversight, as mandated by the Petroleum Industry Act (PIA).
Mr. Ahmed urged the industry to adhere to all regulatory requirements, particularly those related to safety, efficiency, best practices, sustainability, consumer protection, and community participation. Looking ahead to 2025, the NMDPRA aims to build on its successes to enhance regulatory oversight, which will include upgrading laboratories for improved product quality analysis, fostering inter-agency collaborations, and advancing automation and sustainability in the industry.