Nigeria is set to transform its energy landscape with a landmark deal between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and China’s Endurance Group.
The partnership aims to establish 500 compressed natural gas (CNG) refueling stations across the country within the next three years, marking a significant step towards promoting cleaner energy alternatives and reducing dependence on petrol and diesel.
The agreement involves setting up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will drive the rollout of these CNG stations, develop liquefied-to-compressed natural gas (LCNG) facilities, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states.
According to Oluwole Adama, Executive Director of MDGIF, this collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain. The project is expected to create new jobs, deepen local manufacturing, reduce transportation costs, and enhance energy security while reducing carbon emissions.
The Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, noted that the initiative aligns with President Bola Tinubu’s vision of ensuring energy security by deepening the use of auto CNG and reducing overdependence on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), particularly in the transportation sector.
The deployment of 500 CNG stations over three years is expected to dramatically expand access to gas-powered mobility, and the inclusion of LCNG plants, supporting supply networks, and virtual pipeline trucks ensures that even states without existing natural gas pipelines can benefit from the transition.