Nigeria's Federal Government and Rolling Energy Limited commissioned three compressed natural gas (CNG) facilities in Kano State on Tuesday, with combined capacity to serve 2,500 cars and tricycles plus 200 trucks every day. The facilities form part of a partnership between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Rolling Energy to develop 18 gas infrastructure projects across three states and the Federal Capital Territory.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, commissioned the sites, which comprise a liquefied-to-compressed natural gas (LCNG, the conversion of imported LNG back into gas for vehicle use) distribution hub and retail station at Tamburawa, plus an LCNG retail station at Hotoro.

What does the price gap look like?

The economics driving the switch are stark. Oluwole Adama, Executive Director of MDGIF, said petrol sells for roughly ₦1,420 per litre in Kano, against approximately ₦600 for the equivalent energy from CNG. He said the projects were designed to address infrastructure gaps in the gas value chain and improve access to cheaper alternative energy.

A tricycle operator spending ₦14,200 daily on 10 litres of petrol could cut that outlay to about ₦6,000 by switching to CNG, according to Adama. That equates to a daily saving of ₦8,200 and nearly ₦250,000 monthly. He said the savings could raise transport operators' earnings and potentially reduce the cost of moving agricultural produce, livestock and manufactured goods across the region.

How large are the new facilities?

The Tamburawa site, located in Dawakin Kudu Local Government Area, has a capacity of 300,000 standard cubic metres daily, with infrastructure for LNG (liquefied natural gas) storage, regasification and CNG distribution. Adama said the facility could also supply other gas stations, while its adjoining retail outlet serves motorists directly. The Hotoro facility in Tarauni Local Government Area has a capacity of 21,000 standard cubic metres daily.

Adama noted that the MDGIF was established under Section 52 of the Petroleum Industry Act to support midstream and downstream gas infrastructure through partnerships with private investors. He urged fleet owners, transport unions and businesses to use the facilities, while stressing the need to maintain safety standards and build customer confidence in gas-powered transportation.

What did the minister say?

Ekpo described the commissioning as proof of the Federal Government's commitment to converting gas policy into physical infrastructure. "What we commission today is more than three pieces of infrastructure. It is Renewed Hope made tangible," he said. He added that the government would continue to mobilise private-sector investment to expand gas access for households, businesses and the transportation sector.

Where does the expansion go next?

Rolling Energy's Founder and Chief Executive Officer, Mubarak Danbatta, said the project matters because of the difficulty of accessing gas in northern Nigeria. He explained that the Tamburawa hub provides a closer supply point for investors seeking to build CNG stations in Kano, Jigawa, Zaria and neighbouring locations, reducing dependence on gas transported from Ajaokuta and Obajana in Kogi State.

The company has incorporated vehicle conversion workshops into the facilities, using Greco CNG kits. The Tamburawa workshop can convert 20 vehicles daily; the Hotoro site has a capacity of six vehicles. "We are not building stations only for our own customers. We are creating infrastructure that enables other businesses to serve their own customers and grow," Danbatta said.

The MDGIF partnership also covers plans for regasified liquefied natural gas (RLNG) gas-to-power facilities to support industrial operations. Kaduna and Borno states are next in the expansion plan, with three facilities proposed in each. Jigawa, Katsina, Sokoto and Zamfara are under consideration for future expansion.

Rolling Energy previously commissioned gas facilities in Ilorin, Jahi and Karu in Abuja as part of its investments in Nigeria's alternative fuel infrastructure.

Kano State Governor Abba Kabir Yusuf attended through his representative, Commissioner for Power and Renewable Energy Gaddafi Sani Shehu. Also present were the President of the Nigerian Academy of Engineering, Prof. Umar Garba Danbatta, representatives of the Presidential Initiative on CNG and Electric Vehicles, regulators, community leaders and other industry stakeholders.