8th April, 2013
Sagas, a division of Borkir Energy Company Limited, a subsidiary of Dangote Group has invested $100 million (about N15 billion) in compressed natural gas (CNG) as alternative fuel for use by automotive and industries in the country.
CNG is a fossil fuel substitute for gasoline (petrol), diesel fuel or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to petrol and diesel fuel, and it is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released.
Chairman of Borkir, Alhaji Sani Dangote, disclosed this in Lagos when he signed a 20 year sales and purchase agreement with the Nigeria Gas Company Limited (NGC) to supply and distribute the CNG to all its filling stations nationwide.
“We are investing over a $100 million dollars in the next two years to ensure that gas CNG is available at every major highway in the country and some of the major cities. It is going to take a while for this project to go around everywhere but at least we are starting from somewhere and we believe when Nigeria starts seeing the benefits it would encourage everyone that is mindful of economic aspect of energy to convert their petrol vehicles to CNG gas,” he said.
He explained that the pact was the beginning of a new era in gas utilisation in the country stressing that his company has kick started the necessary process to provide gas as alternative to automobile and industrial fuel.
He said vehicles would be converted to be able to use the gas and that conversion centers would be established at various points across the federation even as he disclosed that such center had been opened at Ikeja already in joint partnership with a foreign firm.
Dangote further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Group’s 5, 000 trucks which are being converted for dual fuel usage (Gas and Diesel), with the hope of converting 20, 000 vehicles within the next one year of take-off.
Stressing on the gains to the economy, he noted “With this kind of partnership, many transport owners and vehicle owners that are into transport business will experience a new look in terms of the cost of fuel and also we expect that they would save up to at least 25 to 30 percent in their fuel cost.
Engr. Saidu Mohammed, the Managing Director of NGC, described the agreement as part of the gas revolution agenda of the government saying the nation has enough gas and that it was a good thing that the gas is being domesticated for commercial use.