Nigerians React As NNPCL-Partner Foresees CNG Price-Reduction With AKK-Pipeline (Details)

Nigerians React As NNPCL-Partner Foresees CNG Price-Reduction With AKK-Pipeline (Details)

CleanEnergy Innovation Limited (CIL), a partner of the Nigerian National Petroleum Company Limited (NNPCL), has announced that the price of Compressed Natural Gas (CNG) will decrease once the Ajaokuta Kaduna Kano (AKK) Gas pipeline starts production.

NNPCL’s Group Chief Executive Officer, Malam Mele Kyari, stated that the AKK pipeline is expected to be completed by the first quarter of 2025. During the opening of the NNPCL CNG station in Abuja, CIL Executive Vice Chairman Shettima Bukhar Imam emphasized that the AKK pipeline will facilitate seamless gas transport, thereby stabilizing supply and reducing prices.

Addressing concerns about increased demand leading to higher CNG prices, Imam explained that unlike Premium Motor Spirit (PMS) petrol, which incurs additional costs due to transportation, the AKK pipeline will allow gas to be transported efficiently, reducing overall costs.

He assured that only 3% of the country’s gas is currently used for CNG production, so there will be no shortages that could drive up prices. Imam highlighted CNG as a cheaper, cleaner alternative to PMS, which will lower costs and create job opportunities.

CIL collaborates with NNPCL to provide, install, and dispense CNG across the country. Despite exchange rate challenges, Imam expressed confidence in CIL’s ability to maintain CNG affordability due to its investments and resources in the sector.