The aim is to meet the increasing demand for Compressed Natural Gas (CNG) among vehicles that run on gas.
It was reported that these converted tankers, which were previously used for petrol transportation, are now being repurposed to transport gas to retail outlets across the country. In addition, marketers are setting up CNG dispensing pumps in selected filling stations that traditionally dispensed petrol.
This shift in focus towards gas supply gained momentum after the Federal Government discontinued the subsidy on Premium Motor Spirit (PMS), commonly known as petrol. President Bola Tinubu announced the end of the subsidy on May 29, 2023, prompting oil marketers to explore alternative fuel options.
The Federal Government has been advocating for the use of CNG as a cleaner and more cost-effective alternative to subsidised petrol. Gas is not only more affordable but also abundant in Nigeria, making it an attractive option for motorists.
Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria, confirmed the developments, stating that several members have already started the process of dispensing gas at their stations and converting their trailers for gas transportation.
While the names of the station owners involved in this transition are being withheld at present, the efforts reflect the industry's commitment to embracing sustainable energy solutions in Nigeria.
Explaining further, he said, “There are some new tankers too, over 300 of them have also indicated interest to have CNG (Compressed Natural Gas) trucks. These trucks are to serve filling stations that would be dispensing gas to vehicles.
“What we will do is collocate the gas dispensing plants in a plug-and-play model with existing filling stations. That is the beauty of it and that is why IPMAN is very keen on this project because there is no Local Government or ward in Nigeria today that you won’t see my members.
“We control over 80 per cent of the downstream oil sector. So it is an advantage for us. For if you are to build new gas or CNG stations, it will take a huge cost. But this collocation model has helped to reduce the exposure in terms of building new stations.”
