Akwa Ibom moves closer to having local supply hub for CNG

Akwa Ibom State is moving closer to having a local supply hub for Compressed Natural Gas (CNG) as Nsik Oil & Gas Company Limited takes delivery of critical equipment for its planned 10 million standard cubic feet per day (10 MMSCF/D) CNG mother station in Esit Eket Local Government Area of the state.

The equipment which arrived on Wednesday night and Thursday morning is expected to strengthen the availability and distribution of CNG in the state at a time the federal government is expanding infrastructure and incentives targeted at moving Nigerians, particularly transport operators, away from petrol towards cheaper alternative fuels.

The facility at Uquo Isi Edoho is designed beyond compressing gas but also to serve as the supply point for a network of stations planned across Akwa Ibom.

This means the project could provide an important supply connection between the state’s growing demand for CNG-powered vehicles and the gas required to keep them operating.

The project consultant, Mkposong Asuquo, disclosed the development on Thursday while speaking at the project site during the delivery of the first consignment of equipment manufactured by China-based Original Equipment Manufacturer, CIMC.

The consignment includes four reciprocating compressors, dehydration and filtration systems, heat exchangers and four generating sets.

Mr Asuquo said the equipment followed the successful completion of a Factory Acceptance Test in China involving the project team and regulators from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

.“We have our first set of equipment from CIMC China, all the way from Jiangsu Province in China. We actually went there, we did the Factory Acceptance Test with the regulators from NMDPRA,” he said.

He said the equipment had been cleared and transported directly to the project site, where it would serve as the core of the facility’s compression and processing system.

Bridging CNG supply gap

The development is noteworthy because increasing the number of CNG-powered vehicles without a corresponding expansion of refuelling and gas distribution infrastructure could constrain the federal government’s effort to make CNG a viable alternative to petrol.

The Nsik facility is designed to address part of that supply challenge in Akwa Ibom.

Mr Asuquo said the promoters had already ordered two trailers for transporting compressed gas from the mother station to planned stations.

The daughter-station model, he said, would allow the company to distribute CNG beyond the immediate host community to motorists, industries and other consumers.

“Our intention is also to feed most of the vehicles that are already CNG-powered,” he said.

The facility is strategically located near existing gas infrastructure. Mr Asuquo said it is about 500 metres from Frontier Energy and three kilometres from Savannah Energy’s Accugas facility, from which the project is expected to obtain its gas feedstock.

The project is an equity partnership between Nsik Oil & Gas Company Limited and the Midstream and Downstream Gas Infrastructure Fund, supervised by the Ministry of Petroleum Resources (Gas).

Supporting Tinubu’s CNG ambition

The project aligns with the federal government’s post-subsidy strategy of increasing the use of natural gas in transportation and other sectors.

President Bola Tinubu’s administration has promoted CNG as an alternative to petrol, particularly because of the sharp increase in transport costs following the removal of the petrol subsidy.

PREMIUM TIMES previously reported that the federal government had expanded its CNG infrastructure target, with President Tinubu ordering the rollout of an additional 500 CNG refuelling stations, bringing the planned nationwide total to 1,000.

The federal initiative has also included subsidised vehicle conversions, CNG buses and financing arrangements intended to encourage motorists and transport operators to switch from petrol and diesel.

However, the availability of CNG infrastructure remains central to whether increased vehicle conversion translates into sustained use.

The planned Nsik mother station adds another dimension to the federal programme by increasing the potential supply of compressed gas at the state level.

Akwa Ibom’s plan

For the Akwa Ibom State Government and other stakeholders promoting CNG adoption in the state, the facility could provide the infrastructure needed to support an expanding network rather than relying solely on CNG supplied from outside the state.

The Special Adviser to the Minister of State for Petroleum Resources (Gas) on Political Affairs, Kufre Sam said the project was expected to serve as a mother station for daughter stations across the state’s 10 federal constituencies.

He said the expansion would bring CNG closer to communities, businesses and industries.

The planned network, he added, could reduce transportation costs and subsequently affect the cost of goods and services.

“That alone will transform to reducing the cost of transportation, reducing the cost of goods, reducing the cost of services,” Mr Sam said.

He also said the network could generate direct and indirect employment through transportation, logistics, contracting and other businesses that would emerge around the daughter stations.

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The state already has a significant gas resource base, but the project seeks to convert proximity to gas infrastructure into a more accessible energy source for transport and industrial users.

From gas resources to consumers

Mr Asuquo said the project had already crossed several stages, including land acquisition, site clearing, geotechnical investigations, Environmental Impact Assessment, Front-End Engineering Design, Detailed Engineering Design, regulatory approvals and gas supply arrangements.

The remaining stages will involve installation and commissioning of the equipment. He expressed confidence that the facility would be commissioned soon.

If completed as planned, the 10 MMSCF/D station would give Akwa Ibom an additional CNG supply and distribution platform at a time the federal government is seeking to expand the fuel’s use nationwide.

The planned stations would then determine how far that supply reaches, particularly whether CNG becomes readily available to motorists and businesses beyond the immediate location of the mother station.