TotalEnergies Nigeria PLC says it is setting up two Compressed Natural Gas, CNG, stations in Abuja and Lagos, which will be operational in the first half of 2022.
It’s Managing Director, Dr Samba Seye, made the announcement while speaking at the 15th Oil Trading and Logistics, OTL, Africa Petroleum Downstream Expo 2021 on Tuesday in Lagos.
The conference has at its theme, ‘Nigerian Downstream Oil and Gas Sector in Transition: Getting Set.’
Represented by his Advisor, Charles Atiomo, Mr Seye said the move was part of TotalEnergies commitment to global transition with a target of net-zero carbon emissions by 2050.
He said the company’s production and sales mix would change significantly by 2030.
“It will be 50 per cent gas; 35 per cent oil and liquid biofuels; 15 per cent electricity, mostly renewable.
“By 2050, the mix would be 40 per cent renewable power, 40 per cent gas and 20 per cent liquid products.
Mr Seye said it was also in support of the autogas scheme of the Federal Government, which was inaugurated to convert vehicle engines in the country from petrol and diesel to CNG.
He said the company was optimistic that more CNG stations would be set up if the government continued to initiate policies to deepen gas utilisation and profitablity.
Mr Seye, however, noted that there was need to reduce the cost of conversion kits and other sources of renewable energy in order to encourage more Nigerians to embrace the switch.
Also, Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation, NNPC, said the Petroleum Industry Act was an enabler of midstream and downstream gas development.
Mr Kyari, represented by Adeyemi Adetunji, Group Executive Director, Downstream, NNPC said the PIA had created certainty around investment in natural gas with a clear fiscal regime for gas development.
He said the Act provided for ten years’ tax holiday for investment in gas pipeline among other fiscal incentives.
“Transition to gas fuel provides investment opportunities in Autogas via conversion of petrol and diesel-powered automobile engines to natural gas use.
“This involves provision of conversion kits and establishment of centres to convert vehicles, building of CNG and CNG facilities, and deployment of CNG/LNG trucks to achieve the one million vehicles target.
“Investors need to sharpen their management practices to strategise to enable them to seize the investment opportunities under PIA,” Mr Kyari said.