10 million PMS vehicles will be converted to CNG, FG brag

10 million PMS vehicles will be converted to CNG, FG brag

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10 million PMS vehicles will be converted to CNG, FG brag

| By Sehubo Festus 




10 million PMS vehicles will be converted to CNG, FG brag

The Federal Government has announced its ambitious plan to convert 10 million Premium Motor Spirit (PMS) vehicles to Compressed Natural Gas (CNG) within the next 36 months.

In a statement on Wednesday by the spokesperson for the Minister of State Petroleum Resources, Louis Ibah. He said the announcement was made by Minister of State Petroleum Resources, Ekperikpe Ekpo, during a panel discussion titled “Energy Talk” at the ADIPEC 2023 conference and exhibition held in Abu Dhabi, United Arab Emirates.

The Honorable Minister, Ekperikpe Ekpo highlighted that this initiative would be carried out in collaboration with the private sector.

“Our ministry is working with the organized private sector to roll out over two million CNG conversion kits for free within the next nine months to push the utilization of CNG as the main fuel for vehicles nationwide. This initiative is aimed at converting 10 million vehicles from PMS to CNG in the next 36 months,” he said.

Ekpo emphasized that the initiative’s main advantages include the creation of over 100,000 new jobs for Nigerians, increasing government savings as a result of lower subsidy costs for PMS importation, and a significant decrease in carbon emissions through the use of clean gas as a fuel source for internal combustion engines.

In order to promote investments in the upstream, midstream, and downstream gas sectors, he reaffirmed the Federal Government’s steadfast commitment to creating a favorable operational and budgetary environment.

Ekpo further emphasized the commitment of President Bola Ahmed Tinubu’s administration to promoting economic expansion related to Nigeria’s significant natural gas resources.

“This is evident in the actions of Mr. President when he split the Ministry of Petroleum Resources into Oil & Gas respectively. This singular action is a testament to President Tinubu’s resolve to promote gas commercialization in Nigeria for export and domestic utilization,” Ekpo said.

The minister, who is the head of the Nigerian delegation to the event, listed several initiatives relating to the government’s action to promote and support gas-based industrialization and decarbonization agenda with the corporation and support of the organized private sector.

Top amongst these initiatives include Decade of Gas both Upstream, Midstream, and Downstream; getting cooking gas to every home and CNG for vehicles; gas flare commercialization program and gas to petrochemicals.

The minister informed the audience about specific policy changes targeted at the gas pricing regime, non-associated gas acreage development, and a review of the terms of the production sharing contracts.

“These are all aimed at attracting investments of more than $20 billion into the country for NAG offshore and deep water acreage development,” he said.

He added that the ministry is working closely with her respective parastatals to get these reforms across to the upper legislative chamber for approval and subsequently for the President’s endorsement.

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