November 8, 2021. TotalEnergies Nigeria PLC has announced that it is setting up two compressed natural gas (CNG) filling stations in Abuja and Lagos, which will be operational in the first half of 2022.
Managing Director, Dr. Samba Seye, made the announcement while speaking at the 15th Oil Trading and Logistics (OTL) Africa Petroleum Downstream Expo 2021 theme, “Nigerian Downstream Oil and Gas Sector in Transition: Getting Set.” in Lagos.
Seye, who was represented at the conference by Charles Atiomohis, his advisor, said the development was part of TotalEnergies’ commitment to global transition with a target of net-zero carbon emissions by 2050.
According to him, the company’s production and sales mix would experience a significant change by 2030 as operations will constitute 50 percent gas; 35 percent oil and liquid biofuels; and 15 percent electricity, mostly renewable. He added that by 2050, the mix would be 40 percent renewable power, 40 percent gas and 20 percent liquid products.
He further explained that the development was also in support of the autogas scheme of the federal government, which was created to convert vehicle engines in the country from petrol and diesel to CNG.
Seye expressed optimism that more CNG stations would be set up if the government continued to initiate policies to deepen gas utilization and profitability. He also emphasized the need to reduce the cost of conversion kits and other sources of renewable energy in order to encourage more Nigerians to adopt the switch.
Also, Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari said that the Petroleum Industry Act (PIA) was an enabler of midstream and downstream gas development. Kyari, explained that the PIA had created certainty around investment in natural gas with a clear fiscal regime for gas development. The Act provided for ten years’ tax holiday for investment in gas pipeline among other fiscal incentives.
