Buhari launches auto-gas programme

02 Dec Buhari launches auto-gas programme

President Muhammadu Buhari, yesterday, launched a programme to enable over 40 per cent vehicles plying Nigerian roads to run on compressed natural gas. Nigeria is expected to convert a million cars to cushion the impact of petroleum subsidy removal, which government said, gulped trillions of naira yearly.

At the virtual launch of the National Gas Expansion Programme and National Autogas Roll-out Initiative at the State House, Abuja, Buhari said: “It is no longer news that the vast natural gas resources, which Nigeria is endowed with, have hitherto been used sub-optimally as a result of dearth of gas processing facilities and infrastructure connectivity for effective and optimal domestic utilisation.

“With a proven reserve of about 203 trillion cubic feet (TCF) and the additional upside of 600 TCF ranking Nigeria as the ninth in the world currently, the need for domestic gas expansion and utilisation is apparent.”

He noted that the new development was not only going to ease the hardship arising from the deregulation of the downstream petroleum sector but would also serve as a veritable medium to a cleaner environment, job creation and catalyst for the growth of the Nigerian economy.

Admitting that deregulation had exposed many to price volatilities in the global market, he urged attention to more affordable alternative energy sources.

Buhari said: “The roll-out of the National Gas Expansion Programme, Auto-gas Initiative is coming at the right time, especially in light of global crude oil market fluctuations coupled with the full deregulation of the local PMS market.

“These developments have made it imperative to focus on gas as an alternative fuel to move Nigeria from the conventional dependence on white products for automobiles and prime movers of industrial applications to cleaner, more available, accessible and affordable energy source.

“The outcome will not only cushion the effect of the downstream deregulation that this government has to painfully implement, but also create new markets and enormous job opportunities for our people.

“I therefore encourage everyone to embrace gas in form of LPG, CNG and LNG as an alternative fuel for automobiles and other prime movers.”

He further said: “The Minister of State for Petroleum Resources is hereby directed to commence the process of handover of mass transit buses to Organised Labour as part of our government’s pledge to continue providing the support that will ease the transportation challenges Nigerians are facing at this time.”

Also speaking at the event, the Minister of State for Petroleum Resources, Timipre Sylva said efforts were ongoing at delivering sustainable energy, improving gas availability and accessibility, boosting gas-based industrialisation and promoting economic diversification.

He stressed the need to harness natural gas to spur manufacturing and productivity.

The Group Managing Director of NNPC, Mele Kyari, said with the collapse of the global economy due to effects of the COVID-19 pandemic, removing subsidy and leveraging alternatives were inevitable.