The Managing Director of Gas Analytics and Solutions, Mr Brian Amonu, has said that Compressed Natural Gas (CNG) is a safer option than Liquified Petroleum Gas (LPG), and as such, will be a better, more affordable substitute for petrol.
In an interview on ARISE NEWS NEWSNIGHT on Thursday, Amonu explained that CNG is a better substitute, saying, “CNG is actually safer than LPG. Your regular cooking gas is safer than petrol in the sense that it’s lighter than air and it is stored under such high pressure in very thick steel cylinders, that if the gas leaks, it quickly dissipates into the atmosphere… Inherently, natural gas is safer than petrol.” He then noted that there had been no explosive incidents in Edo, where CNG has been used since 2007.
Amonu then said that although CNG vehicles had been used in Edo state since 2007, the “the adoption rate has been abysmal.” He then said that he believes that this happened because “efforts in the past have taken the approach that we have coined to be ‘development before planning instead of planning for development’.”
Amonu then pointed out that this was the best period for the operation of CNG, as the removal of fuel subsidy did not just cause an increase in transportation, but also caused an issue to access of electricity, as he said that 40% of Nigerian households, and most of the businesses in Nigeria operate with petroleum-run generators, therefore, also increasing in the cost of operation in businesses.
Amonu stated that Gas Analytics and Solutions which was supported by the African Development Bank, in a sustainable energy project, had partnered with NNPC Gas and Power Investment Company to deliver 300 Mega Watts to electricity distribution franchises in each state, targeting investment opportunities in agriculture, in solid minerals, manufacturing that requires power. He also noted that there was a partnership between the company and the Independent Petroleum Marketers Association of Nigeria (IPMAN), where they planned to construct about 10-20 CNG stations in every state in Nigeria.
Explaining the approach that his company was taking to ensure more investment in the CNG vehicles sector, Amonu said, “We are partnering with the labour congress to deploy a pre-qualification loan form to all the workers in Nigeria. We are working with 8 local banks, being supported by AFDB. So from the responses, we’ve taken criteria’s for accessing 200- for us, we are going to be charging about 285,000 naira and we will be providing loans to vehicle owners, to mass transit operators, to some state governments, to finance the conversion of their vehicles.” He then said that these people will be given about 3-5 years to pay off their loans. “By creating a large pool of converted CNG vehicles, that will justify investment required along each segment of the CNG value chain to deliver this gas. So, both have to happen concurrently, that’s the approach we’re taking”
Ozioma Samuel-Ugwuezi
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