Akwa Ibom Set to Have Local CNG Supply Hub

Akwa Ibom State is getting closer to having a local supply hub for Compressed Natural Gas (CNG). Nsik Oil & Gas Company Limited has received key equipment for its planned CNG mother station in Esit Eket Local Government Area. This station aims to produce 10 million standard cubic feet per day (10 MMSCF/D) of CNG.

The equipment arrived on Wednesday night and Thursday morning. It is expected to improve the availability and distribution of CNG in the state. This comes at a time when the federal government is working on infrastructure and incentives to encourage transport operators to switch from petrol to cheaper fuels.

The facility at Uquo Isi Edoho will do more than just compress gas. It will also serve as the main supply point for a network of stations planned across Akwa Ibom. This means the project could create a vital link between the growing demand for CNG-powered vehicles and the gas needed to run them.

Project consultant Mkposong Asuquo shared the news on Thursday at the project site. He spoke during the delivery of the first set of equipment made by CIMC, a company based in China. The consignment includes four reciprocating compressors, dehydration and filtration systems, heat exchangers, and four generating sets.

Mr Asuquo noted that the equipment came after a successful Factory Acceptance Test in China. The project team and regulators from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) took part in the test. "We have our first set of equipment from CIMC China, all the way from Jiangsu Province in China. We actually went there, we did the Factory Acceptance Test with the regulators from NMDPRA," he said.

He added that the equipment has been cleared and taken directly to the project site. It will be the core of the facility's compression and processing system.

Addressing CNG Supply Needs

This development is significant. If the number of CNG-powered vehicles grows without enough refueling stations and gas distribution, it could limit the federal government's push to make CNG a real alternative to petrol. The Nsik facility is meant to help solve some of that supply problem in Akwa Ibom.

Mr Asuquo mentioned that they have ordered two trailers to transport compressed gas from the mother station to the planned stations. The daughter-station model will allow the company to spread CNG beyond the immediate area, reaching motorists, industries, and other users. "Our intention is also to feed most of the vehicles that are already CNG-powered," he said.

The facility is placed near existing gas infrastructure. Mr Asuquo said it is about 500 meters from Frontier Energy and three kilometers from Savannah Energy’s Accugas facility. This is where the project expects to source its gas feedstock.

The project is a partnership between Nsik Oil & Gas Company Limited and the Midstream and Downstream Gas Infrastructure Fund. It is supervised by the Ministry of Petroleum Resources (Gas).

Supporting Federal Government's CNG Goals

This project fits into the federal government's plan to boost the use of natural gas in transportation and other sectors after removing the petrol subsidy. President Bola Tinubu’s government is pushing CNG as a cost-effective alternative to petrol. This is important, especially after transport costs surged due to the subsidy removal.

PREMIUM TIMES reported that the federal government has expanded its CNG infrastructure goals. President Tinubu has ordered 500 more CNG refueling stations, raising the total to 1,000 nationwide. The federal government also includes subsidized vehicle conversions and financing plans to encourage drivers to switch from petrol and diesel.

But whether the increased vehicle conversions lead to real use of CNG depends on the availability of the right infrastructure. The Nsik mother station will enhance the federal program by increasing the supply of compressed gas in the state.

Plans for Akwa Ibom

For the Akwa Ibom State Government and other supporters of CNG adoption, this facility will provide the needed infrastructure to create a broader network. This way, they won’t have to depend only on CNG from outside the state. Kufre Sam, the Special Adviser to the Minister of State for Petroleum Resources (Gas) on Political Affairs, stated that the project will act as a mother station for daughter stations across the state’s 10 federal constituencies.

He explained that this expansion would bring CNG closer to communities, businesses, and industries. This network could lower transportation costs and, in turn, reduce the prices of goods and services. "That alone will transform to reducing the cost of transportation, reducing the cost of goods, reducing the cost of services," Mr Sam said.

He also mentioned that this network could create jobs directly and indirectly through transport, logistics, contracting, and other businesses springing up around the daughter stations. The state has a good amount of gas resources already, but the project aims to turn that into an easily accessible energy source for transport and industrial use.

Moving from Resources to Users

Mr Asuquo shared that the project has completed several stages. These include land acquisition, site clearing, geotechnical investigations, Environmental Impact Assessment, Front-End Engineering Design, Detailed Engineering Design, regulatory approvals, and gas supply arrangements. The next steps will involve installing and commissioning the equipment. He is confident that the facility will be ready soon.

If everything goes as planned, the 10 MMSCF/D station will provide Akwa Ibom with a new CNG supply and distribution option. The planned stations will determine how far this supply goes, especially if CNG becomes easily accessible to drivers and businesses beyond the mother station.