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CNG vehicles
The Nigerian Mainstream And Downstream Petroleum Regulatory Authority (NMPDRa) has reiterated its commitment to supporting the efforts of the Federal Government through the Presidential Compressed Natural Gas Initiative (PCNGI), aimed at managing, financing and developing domestic CNG vehicles for Nigeria transportation market.
This is in addition to ensuring the support and mass adoption of CNG-fuelled vehicles in the country by providing a special concessionary pricing to Mobility CNG under its pricing framework for gas in the country.
This was addressed in a letter from the Authority Chief Executive (ACE), Mr. Farouk Ahmed dated 20th April, 2024 to the Programme Director/Chief Executive of the PCNGI.
In line with this, NMPDRA has designated mobility Compressed Natural Gas as a special status, which will serve as a subset of Gas to commercial ( GTC), this will also entitle it to Gas Based Industry (GBI ) pricing categorisation for an initial period of 5 years, and renewable for another 5 years only in accordance with the provisions of Petroleum Industry Act (PIA) 2021. The GBI pricing of $1.57/MMBtu is set much lower than ordinary $2.42 and $2.92 for Power and Commercial buyers respectively.
The Presidential Committee on Compressed Natural Gas led by Dr. Zacch Adedeji had initially requested for strategic gas allocation for Mobility focused Compressed Natural Gas projects, in a form of pricing concession. This milestone concession is a significant achievement of the PCNGI collaborative work with NMPDRA.
This concession is expected to spur investors confidence and commercial activities in the nascent market while promoting government policy aspirantion for the sector.
The PCNGI calls on all stakeholders in the sector to take full advantage of this concessionary pricing model for Mobility CNG, and recommit themselves to the future of a gas driven transportation sector that lowers food and energy inflation, while ensuring a cleaner, cheaper, safer and more reliable energy for powering the economy forward in line with the vision of President Bola Ahmed Tinubu.
